Bitcoin has been on a wild ride over the past few weeks, with its price fluctuating between highs and lows. As of writing this article, the leading cryptocurrency is holding at $27,582, a 9% fall from its previous price, leading some traders to book profits in fear of a further downtrend.
However, analysts expect Bitcoin to reach the $26,600–$25,000 zone, where buying interest may pick up. In fact, when an asset emerges from a bear market, it tries to form higher lows on the way up, which act as strong supports during subsequent corrections. The current pullback could end up forming a higher floor for Bitcoin, which may act as a launch pad for the next rally.
If long-term investors believe that a bottom has been made, then panicking and selling on every corrective phase is not a good strategy. Rather, every dip could be an opportunity to build a portfolio. With this in mind, let's examine some altcoins that could potentially outperform on the way up.
BNB (Binance Coin)
Binance Coin, the native token of the Binance exchange, has been one of the best-performing cryptocurrencies of 2021, rising from just $38 in January to its current price of $301. BNB has been on a tear due to its strong use case and the success of Binance, one of the largest and most popular crypto exchanges in the world.
BNB has also held up relatively well during Bitcoin's recent correction, only falling by around 5% from its previous high. If Bitcoin's price does indeed find a bottom, BNB could be one of the first altcoins to bounce back, potentially presenting a buying opportunity for investors.
ADA (Cardano)
Cardano's ADA has been another strong performer in 2021, rising from just $0.18 in January to its current price of $1.26. ADA has been boosted by the success of the Cardano blockchain, which has been making strides in the world of decentralized finance (DeFi).
Like BNB, ADA has held up relatively well during Bitcoin's correction, only falling by around 8% from its previous high. If Bitcoin's price finds a bottom, ADA could also be one of the first altcoins to bounce back, potentially presenting a buying opportunity for investors.
XMR (Monero)
Monero is a privacy-focused cryptocurrency that has been gaining popularity in recent years. Monero's privacy features make it an attractive option for those who value anonymity in their transactions.
Monero has been hit hard by Bitcoin's recent correction, falling by around 23% from its previous high. However, if Bitcoin's price finds a bottom, XMR could be a potential buying opportunity for investors looking to diversify their portfolio.
TON (TON Crystal)
TON Crystal is the native token of the Free TON blockchain, a decentralized network that aims to provide secure, fast, and scalable transactions. TON Crystal has been gaining popularity in recent months due to its strong use case and potential for growth.
TON has been hit hard by Bitcoin's recent correction, falling by around 29% from its previous high. However, if Bitcoin's price finds a bottom, TON could be a potential buying opportunity for investors looking to take a risk on a high-potential altcoin.
In conclusion, while Bitcoin's recent correction has caused a sell-off in many altcoins, there are a handful that have held up relatively well and could present buying opportunities if Bitcoin's price finds a bottom. As always, investors should do their own research and consider the risks before making any investment decisions.
Disclaimer: The information provided in this article is for educational and informational purposes only and should not be considered as financial advice. Investing in cryptocurrencies carries risks, and readers should do their own research and consider the risks before making any investment decisions.