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Bitcoin BTC/USD consolidates as Ethereum ETH/USD and Solana SOL/USD show strength, leading market commentators to predict that momentum is starting to flow into altcoins.
What Happened: Crypto analyst Cheshire Capital said on Tuesday on X that the market remains structurally strong, even as price action becomes frothy.
He continues to hold long positions across key assets but is trimming size as a precaution, highlighting a shift to a more staggered cycle.
According to Cheshire, Bitcoin is consolidating roughly 5% above previous all-time highs, driven largely by the presence of a massive 80,000 BTC over the counter (OTC) whale, which has temporarily absorbed spot momentum.
Key Insights:
ETH and SOL are currently the most attractive tokens to bid on, supported by their volume, narrative strength, and mNAV flywheel dynamics driven by Crypto Treasury Companies (CTCs). XRP XRP/USD and Dogecoin DOGE/USD are viewed as plausible contenders for the next leg up if momentum trickles down from majors. Altcoins in general remain well below all-time highs, suggesting untapped upside, especially as open interest (OI) and price action show room for expansion.
Cheshire notes the traditional risk curve flow (BTC → ETH/SOL → altcoins) seems disjointed but expects Ethereum and Solana strength to eventually cascade into broader altcoins.
Also Read: ‘I’d Rather Have An iPhone Than A Landline’, Says Ether Machine CEO About Why He Doesn’t Own Bitcoin
Why It Matters: Despite Bitcoin entering a mid-cycle cool-off, Cheshire remains bullish on the broader market.
Funding rates are moderate, and although Bitcoin has only recently broken its all-time high, past risk-on cycles typically last longer (4-6 weeks), suggesting more upside.
He anticipates Bitcoin open interest to climb sharply from the current mid-110s to 125-130 as markets digest the OTC whale flow, potentially reigniting upside momentum.
He emphasizes there are still no clear signs of a cycle top, and that the recent 11-day consolidation is healthy and likely temporary.
Cheshire’s current positions are in ETH, SOL, XRP, Pepe PEPE/USD, DOGE, and TRUMP TRUMP/USD, in decreasing size.
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Trader Who Called Bitcoin, Ethereum, Solana Bottom In April Now Warns Local Top Likely In August BTCGrayscale Bitcoin Mini Trust (BTC) Common units of fractional undivided beneficial interest$52.691.85%Stock Score Locked: Edge Members Only
Benzinga Rankings give you vital metrics on any stock – anytime.
Unlock RankingsEdge RankingsMomentumN/APrice TrendShortMediumLongOverview$BTCBitcoin$119130.071.45%$DOGEDogecoin$0.2640-2.81%$ETHEthereum$3696.33-1.80%$PEPEPepe$0.000014-2.31%$SOLSolana$201.863.08%$TRUMPOfficial Trump$10.80-3.83%$XRPRipple$3.560.27%Market News and Data brought to you by Benzinga APIs
