Bitcoin [BTC] price currently seems to be range bound in the $7000 range. Moreover, the past few weeks have been highly bearish for altcoins.
Ethereum [ETH], Litecoin [LTC], BCH and so on are close reaching last years’ November support levels where the reversal began.
With XRP, it has been trading below $0.2 – a two year low in the price of the cryptocurrency. It is trading down 92% from its high in December 2017.
Josh Rager, a crypto analyst and derivatives trader notes on altcoins that,
Volatility is low, correlation is very similar with Bitcoin. A lot of these altcoins whether market makers/big investors are waiting to see what Bitcoin does.
He also mentions that in case of a drop in Bitcoin to $6000, the price of altcoins could benefit from it.
According to a recent prediction by BitMEX research, the dominance of Bitcoin could decrease over the course of 2020. This would imply increase in the value of altcoins w.r.t. Bitcoin.
However, Willy Woo’s Altcoin/Bitcoin market capitalization chart, the ratio is currently at the threshold level.
According to Woo, the break-down of the trendline could cause another 60% drop in the ratio where the altcoins would finally be purged of the 2017 bubble run. The On-chain analyst perceives that the correlation with Bitcoin’s bull trend would break below the line.
Nevertheless, many altcoins XRP, Litecoin [LTC], Ether [ETH] and so on are already testing levels prior to the exponential run in December 2017. While the bullish sentiments were intact throughout the year, it was not before December where the mad-run was witnessed. However, Bitcoin’s dominance prior to the ‘alt-season’ in 2017 was above 80%.
Furthermore, there are other ‘Bitcoin Maximalists’, as one might call them, who believe that Bitcoin’s dominance would increase past 80% again as the ‘shitcoins’ continue to die.
Last but not the least, the altcoins currently include stablecoins as well, which is basically FIAT. Hence, the actual dominance of altcoins in the crypto-markets might be lower.
How do you analyse the bitcoin: altcoin dominance in the near future? Please share your views with us.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com