Wolfe Research: These 4 Altcoins Are Getting Ready to Break!

Market research firm Wolfe Research has published its latest report on the cryptocurrency market. Rob Ginsberg, a chart analyst at Wolfe Research, expects Bitcoin to remain below $40,000 for weeks. Also, it is expected to fall further before its next rise. According to the report, altcoins have come into focus after Bitcoin ETF approvals. As such, they have the potential to outperform Bitcoin in the near term. The research company draws attention to 4 altcoin projects in the report.

"**Bitcoin will see more declines before a rally!" **

As you can see from Kriptokoin.com, we started the new year with the approval of spot Bitcoin ETFs in the United States. Despite the high anticipation for ETFs, Bitcoin ended January with little gain. Currently, it finished the month hovering around $42,000. Rob Ginsberg, a chart analyst at Wolfe Research, says that at some point, Bitcoin experienced a news-selling phenomenon that caused its price to drop below $39,000. However, he states that he has managed to recover somewhat. According to Ginsberg, consolidation will continue in the lower $40,000 range over the next few weeks. Moreover, the analyst expects further declines before a significant rally. In this context, the analyst makes the following assessment:

While > has rallied about 15% from the Jan. 23 low, we expect consolidation to continue in the range below $40,000 over the next few weeks. A breakout seems unlikely in the near term. ... Bitcoin's long-term overbought situation has yet to be truly revealed. This leads us to believe that we will see further declines in the next month or two before its next rise.

### Solana and these 3 altcoins are poised for short-term gains

While Bitcoin struggled to stand on its own two feet, Solana and other altcoins performed remarkably. Solana soared by more than 550% between September and January. Despite the pullback in January, the outlook for Solana and similar cryptocurrencies remains bullish. Ginsberg highlights a bullish flag forming for Solana and a positive reversal in the moving average convergence/divergence (MACD). Along these lines, it points to an imminent break above $100. This trend isn't unique to Solana. Regarding his analysis, Ginsberg says:

The formation of a bull flag at this time ... and with the MACD turning positive again, we think a break from $100 to new highs is imminent. We're used to seeing Bitcoin outperform other assets. So this makes a lot of sense. Solana and other altcoins have been on a strong rise in recent months. They will probably continue their outperformance in the near term.

According to the analyst, other altcoins such as Cardano (ADA), Avalanche (AVAX), and Chainlink (LINK) are also set to make short-term gains. The shift in focus to these alternative cryptocurrencies was spurred in part by the SEC's approval of spot Bitcoin ETFs. This, in turn, has increased investors' interest in the broader crypto market.

### The changing crypto landscape

Recent developments in the crypto market underscore a significant shift in investor sentiment and market dynamics. Bitcoin's dominance is being challenged by the rise of altcoins, which are becoming more attractive to investors looking for faster and potentially larger returns. While this shift coincided with the SEC's approval of spot Bitcoin ETFs, which was a milestone for Bitcoin, it also increased interest in the altcoin sector. As investors navigate this evolving environment, the performance of altcoins like Solana could offer new opportunities for growth, even as Bitcoin continues to consolidate and prepare for its next big move.

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