The cryptocurrency market has endured a steep sell-off in the past 24 hours, with Bitcoin’s (BTC) price tumbling nearly 6% from Friday’s high.
Over $47 billion was wiped from the crypto market’s value, prompting dire warnings from prominent voices like “Dogecoin millionaire” Glauber Contessoto.
However, amid the volatility, some speculative investors are questioning which altcoins offer the best value for the remainder of 2023 and beyond.
Crypto Crash Triggers Breakdown in Bitcoin’s Price
Since Friday, Bitcoin’s price has slumped from $44,730 to just above $42,000, abruptly ending a period of bullishness and new yearly highs.
The sell-off has been driven by a combination of overbought technical indicators, profit-taking from BTC miners, and liquidations in the futures market.
Bitcoin’s daily relative strength index (RSI) recently surged above 70, signalling overvalued conditions that usually occur before a correction.
Additionally, an article from Cointelegraph highlighted that traders have become heavily biased toward profit, with Bitcoin’s net unrealized profit/loss metric exceeding 0.5 – increasing the risk of mass selling.
Miners appear to be among those securing gains, with wallet balances and exchange inflows spiking as these companies brace for the 2024 BTC halving.
These factors have combined to create the perfect conditions for a price correction in Bitcoin.
However, most altcoins have followed Bitcoin’s lead, with the likes of Ethereum (ETH), Solana (SOL), and XRP (XRP) all experiencing a sharp drop in value.
Dogecoin Millionaire Presents Warning of Impending Market Pullback
The plunge in crypto prices prompted a clear warning from prominent retail trader Glauber Contessoto, better known as the “Dogecoin millionaire,” for his early investment in DOGE.
Contessoto took to Twitter on Sunday evening to sound the alarm on broad-based selling across the crypto sector, stating that “everything is dumping.”
His tweet received over 140,000 views as the crypto community sought insights from high-profile names on social media.
Contessoto doubled down on his bearish call in a follow-up tweet, stating that a “bull trap” is ongoing, and investors can expect a “20% to 30% retracement.”
The reference to a bull trap, a false breakout to new highs before a significant reversal, shows that Contessoto expects the crash to deepen in the near term.
As one of crypto’s most prominent success stories, his warnings could create a negative sentiment in the market and drive further panic selling.
Which Altcoins Could Be the Best to Buy During the Dip?
While the market is dipping, certain altcoins with innovative models or strong communities could defy the bearishness and perform well long-term.
One such project is Meme Kombat (MK), an Ethereum-based platform featuring P2E meme battles where users can bet on fight outcomes between 11 meme characters to earn rewards.
Investors can buy MK tokens through the ongoing presale for $0.235 ahead of the Uniswap listing scheduled for mid-January.
Another altcoin to watch is Bitcoin Minetrix (BTCMTX), which lets users “Stake-to-Mine” by staking tokens to earn BTC without expensive hardware.
By tapping into demand for passive income and exposure to the crypto mining sector, Bitcoin Minetrix empowers holders to keep earning, regardless of the state of the market.
Like Meme Kombat, Bitcoin Minetrix is still in its presale phase, yet early investors can buy BTCMTX tokens at the discounted price of $0.0121.
Lastly, ApeCoin (APE), the token underpinning the Bored Ape Yacht Club NFT ecosystem, has one of the market’s most committed communities.
As other top meme coins have demonstrated, hype-driven demand can propel APE’s value higher, even while major cryptos are struggling.
Although APE has pulled back recently, it is still up a whopping 65% from October’s low, highlighting the resilience of the token.