What’s Better Than Buying Bitcoin? Cheap Altcoins That Could Rally This Cycle

What’s Better Than Buying Bitcoin? Cheap Altcoins That Could Rally This Cycle

Bitcoin has recently surged above $100,000 after a slight correction earlier this week. Despite the market's optimism, with a Pew Research Center poll showing 17% of U.S. adults have invested in cryptocurrency, many investors are now looking for alternatives to Bitcoin as it reaches new highs. For traders who missed out on Bitcoin’s rise, cheap altcoins could offer lucrative opportunities in this cycle.


Trump’s Crypto Stance Fuels Optimism for Bitcoin and Altcoins

Former President Donald Trump’s crypto-related statements have further fueled the positive market sentiment. Speaking with CNBC’s Jim Cramer, Trump shared plans to push the U.S. to be a leader in crypto, stating, “We’re gonna do something great with crypto because we don’t want China, or anybody else … but others are embracing it, and we want to be ahead.” This, combined with his pro-crypto appointments and strategic focus on crypto, has reassured market participants and sparked a rally in both Bitcoin and altcoins.


Bitcoin’s recent rebound past $100,000 has reignited fears of missing out (FOMO) among investors, contributing to the “extreme greed” sentiment reflected in the Fear and Greed Index. However, for those who are still sidelined and looking for a way in, now could be the time to consider some undervalued altcoins, as many of them are beginning to show signs of upward momentum.


Bitcoin Options Data Shows Bullish Sentiment

Bitcoin's market outlook remains bullish, with recent options data indicating strong investor confidence. The 25-delta risk reversal for Bitcoin suggests a bullish sentiment as calls have a higher implied volatility than puts, signaling that more traders are betting on a price increase. Bitcoin has been holding steady above $100,000, supported by increased call options activity. A lower put-call ratio, currently at 0.55, further confirms the optimism in the market, with derivatives traders expecting continued bullish movement.


Implied volatility (IV) has also decreased since Bitcoin's return to $100,000, signaling a more stable price range. Historically, declines in IV indicate that traders expect less price fluctuation and view the market as less risky.


Altcoin Season: A Potential Rally in the Making

The altcoin season index, a gauge of how altcoins are performing relative to Bitcoin, has recently climbed to 71 on a scale from 0 to 100. A reading of 75 indicates the onset of altcoin season, where altcoins tend to outperform Bitcoin over a 90-day period. With the index showing increasing bullishness, many believe the second leg of altcoin season is near, suggesting that altcoin prices could see significant gains in the coming weeks.


Top Cheap Altcoins to Watch in This Cycle

With Bitcoin's market dominance high, several undervalued altcoins are poised for potential growth this cycle. Here are some top contenders:


  • Ethereum (ETH)

Ethereum remains a strong contender for outperformance due to rising institutional and retail interest. As Ethereum continues to play a pivotal role in decentralized finance (DeFi), Layer 2 solutions, and other blockchain innovations, tokens built on its network could see massive growth. Notable Ethereum-based projects such as AAVE, Maker (MKR), and Ethereum Name Service (ENS) could benefit from the rising demand.


  • Aerodrome Finance (AERO)

AERO, a decentralized exchange (DEX) within the Base ecosystem, has gained attention with its impressive daily trading volumes exceeding $1 million. Despite recent price fluctuations, AERO is currently trading in a buy zone, with technical indicators supporting a price target of $3.14 this cycle.


  • Beam (BEAM)

Beam is a gaming token that fits into the growing gaming and AI integration trend. The token has recently been impacted by market volatility but remains a strong candidate for a rebound, with its buy zone between $0.028 and $0.030. Technical indicators such as the MACD support further price gains.


  • Chainlink (LINK)

Chainlink, a leading oracle network, is essential for enabling cross-chain communication. With strong institutional demand and an increasing role in both decentralized and traditional finance, LINK remains an attractive buy in the $29–$31 range, with targets at its previous highs of $38 and $53.


  • Pups World Peace (PUPS)

PUPS, a meme coin with a market capitalization above $232 million, has seen volatility but remains in an uptrend. Its target price, following a recovery from recent lows, is around $0.40, making it a speculative but potentially high-reward asset.


  • AAVE

AAVE, a leading DeFi token, has a strong market cap of $5.43 billion and a positive outlook based on technical analysis. The current buy zone is between $288 and $294, with potential for a rally toward its 2021 peak of $459.


Strategic Considerations for This Cycle

The 2024 cryptocurrency market is unlike previous bull runs, with institutional capital increasingly favoring Bitcoin. While Bitcoin may hover around the psychological $100,000 level, the return of altcoin season could see altcoins outperform Bitcoin in the near term. However, as always, market volatility and potential corrections remain a risk, especially if Bitcoin experiences another flash crash.


For investors looking to diversify their portfolios, cheap altcoins present an intriguing opportunity in the current market cycle. With the right strategies, these altcoins could provide substantial returns as Bitcoin and altcoins both continue to benefit from the ongoing bullish trend.

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