Jasmy, Daddy Tate, Reef lead losses as Bitcoin stalls at $65k

Popular altcoins suffered a sharp comeback on Sunday, September 29, as Bitcoin’s recent rally stalled a few points below $66,000.

Jasmy, Daddy Tate and Reef reverse

Popular Japanese coin JasmyCoin (JASMY) fell 8% from Saturday’s high to $0.02326.

Daddy Tate (DADDY), the meme coin associated with controversial social media personality Andrew Tate, fell to an intraday low of $0.1147. Reef (REEF) fell to $0.0052.

Some of this month’s top earners also fell sharply; This is a sign that some traders are starting to make profits. Viral hippo-themed meme coin Moo Deng (MOODENG) is down 17%, while LandWolf (WOLF) is down over 10%.

As a result, the total market cap of all cryptocurrencies tracked by CoinGecko fell by almost 2% to $2.4 trillion.

Still, cryptocurrencies have been some of the best assets this month. Bitcoin is up over 20% from its low point during the month and remains about 10% below its all-time high. This rally explains why most altcoins have bounced back since the last bullish cycles, most of these coins tend to outperform.

Centiment warning

There are two possible reasons why altcoins like Jasmy, Reef, and Daddy Tate are pulling back. First, Santiment warned that Bitcoin could attempt to reach an all-time high, citing increasing bullish claims about Bitcoin on social media.

While bullish sentiment on social media is generally seen as good, Santiment cautioned that markets have historically moved against mass expectations.

📊 If you’re waiting for Bitcoin’s all-time high, you may need to wait for the crowd to slow down their own expectations. There are currently 1.8 uptrends for BTC for every 1 downtrend. Markets historically always move in the opposite direction to mass expectations. pic.twitter.com/ZxDxalgmzb

— Santiment (@santimentfeed) September 29, 2024

Technically, there are also concerns that Bitcoin could find resistance at the descending trend line that connects the highest swings since March. Failure to flip this level will likely push other altcoins significantly lower, dragging them with it.

On the positive side, a break above this level, as some analysts have predicted, would push it towards the next resistance at $70,000 and then to a new all-time high.

Secondly, these tokens retreated as investors took profits due to the recent rise. At its highest point this month, Reef is up over 1,018% from its lowest point. Similarly, Jasmy increased by 48% and Daddy Tate increased by 144%.

Historically, altcoins have tended to pull back after experiencing a strong rally. For example, on-chain data shows that whale Jasmy moved $1.5 million worth of tokens to Coinbase. Three other wallets moved tokens worth a total of $4.5 million to Coinbase in the last 24 hours.