Bitcoin [BTC] and Alts Ethereum, Litecoin, and XRP Looking At Opposite Ends of a Break-out?

By Nivesh Rustgi
Published May 2, 2019 Updated June 14, 2019
Best Buy In

Exchanges

Sportsbook

Wallet

Bitcoin [BTC] and Alts Ethereum, Litecoin, and XRP Looking At Opposite Ends of a Break-out?

By Nivesh Rustgi
Published May 2, 2019 Updated June 14, 2019

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.

advertisement

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.

According to trade and chart analyst, alias Sawcruhteez on Twitter, the charts of Ethereum [ETH] and Bitcoin [BTC] are currently looking at opposite ends. He tweeted:

“Seeing a major divergence between $BTC and $ETH over the past month. Bitcoin has formed a bull channel while #ETHUSD is trapped in a bear channel.”

Bitcoin and Ethereum
Analyst Compares Bitcoin and Ethereum channels

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.

LTCBTC
LTC/USD 1-Day Chart Coinbase (TradingView)

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.

XRPBTC
XRP/USD 1-Day Chart on Coinbase (TradingView)

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. 

advertisement
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Nivesh Rustgi
1181 Articles
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

Loading Next Story