Bitcoin and the cryptocurrency markets closed over 21% higher on a monthly scale as it added $30 billion to its total market capitalization. Moreover, the rise was recorded on a single day as Bitcoin has held support above $5000 for the month.
Furthermore, the instantaneous rise in Bitcoin and the associated surge in altcoins required for the markets to de-couple to justify Bitcoin’s price. Bitcoin’s dominance over the cryptocurrency market has seen a slight increase by over 4% over the past month.
Altcoins Ethereum [ETH], Litecoin [LTC] and XRP’s Divergence
While Bitcoin’s dominance over the cryptocurrency market is 55.4%, Ethereum is leading the altcoins with 10% dominance over the entire market as well. Hence, a massive price break-out in Ethereum will have a considerable effect on the markets.
“Seeing a major divergence between $ and $ over the past month. Bitcoin has formed a bull channel while # is trapped in a bear channel.”
Similarly, even Litecoin [LTC] is forming a similar downward facing channel to that of Ethereum [ETH]. The price of Litecoin at 4: 40 hours UTC on 2nd May 2019 is $72.39. It is trading 20% higher on a monthly scale, after testing higher of $99 and a low of $64 during April 2019.
XRP is also looking to form a channel resembling Litecoin [LTC] and Ethereum [ETH], suggesting that the divergence from Bitcoin is observed across all top coins. The price of XRP at press time is $0.303.
Furthermore, Sawcurhteez also mentioned that he is currently short on Ethereum. He tweeted:
May is the month to pay close attention to this pair (ETH/BTC). I am currently short and looking to add if we bounce to 0.031 – 0.032 [BTC] levels.”
Hence, the possibility of a massive shift in the percentage of holdings between Bitcoin and other altcoins can be expected soon.
So you agree with the analysis, will Bitcoin and altcoins de-couple again? 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