Crypto analysts are looking at certain altcoins in a proactive attempt to position their portfolios strategically. The rebalancing comes as Bitcoin (BTC) hovers around $68,000.

Typically, bullish sentiment in the Bitcoin market spills over to altcoins as capital rotates to smaller tokens with smaller market capitalizations.

Analysts Identify Top Altcoins Picks For Q4

Miles Deutscher, a popular crypto analyst, positions his portfolio with altcoins from select market sectors. He reveals a balanced blend of AI-focused projects and long-term meme coin holdings. These come as the analyst aims to capitalize on the technical and fundamental strengths of the following digital assets, among others.

Deutscher views Bittensor (TAO) as a leader in the AI cryptocurrency space, positioning it as his top holding for this cycle. He explains that TAO has been a high performer in his portfolio, driven by its AI infrastructure, which has garnered significant attention.

Another key asset in Deutscher’s portfolio is NEAR Protocol (NEAR), one of the leading Layer-1 (L1) blockchains for AI. While TAO leads the AI infrastructure sector, NEAR is positioned as the primary AI L1 solution, making it integral to the broader investment thesis. Additionally, according to Deutscher, NEAR’s growing prominence in the AI space makes it a compelling addition for those looking to diversify within the AI crypto niche.

Finally, Deutscher highlights Aethir (ATH) as another significant part of his portfolio among lower-cap assets. He emphasizes that while AI coins have been widely discussed, the market has yet to experience a full-fledged “AI season,” meaning many of these assets remain undervalued.

Read more: Top 9 Artificial Intelligence (AI) Cryptocurrencies in 2024

In his view, Aethir has the potential for explosive growth once the AI narrative gains more momentum. For now, he advises cautious accumulation on dips, with the understanding that significant gains could be realized once AI coins become more widely adopted.

Dogecoin For High-Risk, High-Reward Plays

Deutscher also included Dogecoin (DOGE) in his altcoin strategy for Q4. The meme coin, already up 25%, has shown strong performance driven by speculation around Donald Trump’s potential presidential run in 2024. Additionally, crypto influencer Andrew Kang’s endorsement has further bolstered market confidence in DOGE as a viable speculative trade.

“One of the most interesting ways to express a “Trump Victory” trade would probably be owning DOGE (and other memes) Not only do you have high odds of a Doge ETF but the Department of Government Efficiency (DOGE) would be making headlines every week and be pushed forward by Trump,” Kang noted.

While DOGE remains a high-risk play, Deutscher sees potential in its ability to capture market enthusiasm during periods of heightened speculation. He suggests that those looking for shorter-term gains could consider Dogecoin, though he cautions that it should not make up a large portion of an investor’s portfolio.

BeInCrypto data shows that DOGE is trading for $0.1338 as of this writing, up by almost 10% since the Friday session opened.

Taking Profits and Rotating Back to Bitcoin

Beyond these primary plays, another popular analyst, Michaël van de Poppe, draws attention to a range of other projects. He highlights the need to take profits and rotate them back to Bitcoin.

Michael argues that older altcoins that performed well in previous cycles may not replicate their past success. With this, he points traders and investors to altcoins in their early stages but with the potential for greater returns.

Advising calculated risks by focusing on emerging projects, the analyst highlights Renzo (REZ), which recently entered the Solana ecosystem. Other mentions include Omni Network (OMNI) and Rocket Pool (RPL), among others.

Michael van de Poppe recommends monitoring for upward trends and taking profits when an altcoin’s price approaches its previous high. Once profits are taken, he advises reallocating into Bitcoin and Ethereum or stablecoins, depending on the market’s condition. This strategy, according to Michael, allows investors to protect gains while preparing for future corrections.

Read more: 12 Best Altcoin Exchanges for Crypto Trading in October 2024

The analyst also encourages an overreaching strategy, compounding returns through newer altcoins while gradually moving profits into safer, more established assets like Bitcoin and Ethereum. This approach, he says, positions investors to maximize returns while managing risks in a volatile market.