Ethereum [ETH] swiftly dropped below $200 psychological support to test lows at $150. Bitcoin [BCH] Cash, Litecoin [LTC], XRP also plummeted below support levels. The altcoins are closing in on the year to date rise due to revival of Bitcoin bears.
The plunge in altcoins was of gigantic proportions due to the violent price action in Bitcoin. Sawcruhteez, crypto-trader, and analyst suggested that a bounce is on the cards short term. However, his targets towards the end of October are near $130.
Bitcoin [BCH] Cash, Bitcoin SV, and EOS fell steepest among top ten cryptocurrencies. BCH has dropped more 22% to test lows near $220. According to leading chart analyst, Peter Brandt, there could be further downside to it.
He suggested a break-out from the bearish head and shoulders pattern on a daily scale in BCH/USD. The formation of the pattern has been panned out from about five months.
— Peter Brandt (@PeterLBrandt) September 24, 2019
Notably, most top altcoins followed a similar pattern of rising and fall. They have moved together in tandem this year. Hence, a drastic drop in the price of one of the top altcoins could act as a catalyst for others as well.
The total market capitalization of altcoins broke below the 200-Day Moving Average on the daily and weekly. It was currently tested the consolidation levels before the break-out in 2017. However, the momentum is reversed this time.
The dominance of Bitcoin [BTC] is again closing near 70%. Willy Woo’s had suggested earlier from the altcoin cap/bitcoin that it is currently testing a critical support level. More than 5% drop this level can initiate another round of bears. He said,
If this level fails, I’d expect roughly a 60% drop relative to Bitcoin’s cap before we some the next area of support.
Currently, Bitcoin’s [BTC] price is looking to hold the psychological support level at $8500. A revival or further drop in Bitcoin will act as a cue for altcoins as well.
Do you think altcoins will reach its bearish targets or bounce before? 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