Bitcoin broke above $10,000 almost a month back on 21st June 2019. The bullish action was predictably strong as BTC continued to gain new highs yearly highs past $13,800. Moreover, the bulls have been in action since April which resulted in a parabolic rise of about 230% from $4200.
The price of Bitcoin at 5: 30 hours on 24th July 2019 is $9677. It is trading 5.7% lower on a daily scale.
While it was characterized as a strong bull market, not all traders have profited from the move. Bitcoin’s rise was questioned for a pullback at all milestone this year. However, it did not budge until $13,800. The altcoin traders and ‘hodlers’ also suffered huge losses during this break.
Nevertheless, except XRP the year-to-date rise in the top altcoins has been positive until now. Litecoin is trading about 193% higher from YTD, while Ether [ETH] is trading about 100% higher from its yearly lows. Moreover, the dominance of Bitcoin has already increased by over 15% since the beginning.
Hence, the smaller capped altcoins seem to be taking to the maximum brunt of the bearish pressure. They are being described as ‘shitcoins’ even by crypto-enthusiasts. Peter Brandt, chart analyst, and trader recently attempted to analyze the parabolic trend in Bitcoins and altcoins.
According to his analysis, an 80% drop from high of the parabolic is probable in the near future. Moreover, he also emphasized later that altcoins could face maximum risk. He tweeted,
While the parabola in BTC was subject to different renderings, the parabola in the total market cap chart was loud and clear. The total cap should correct 80%. Most of the damage of decline will occur to altcoins.
The total market capitalization of crypto-markets is has already dropped about 35% from the high. Coincidentally, the next huge support and to 80% drop from parabola both point towards the same level around $160 billion. The total market capitalization of altcoins at the moment is around $265 billion.
The top altcoins Litecoin [LTC], Ethereum [ETH], Bitcoin Cash [BCH] and so on are back to testing critical support levels. A break below these levels could be of massive proportions. While Litecoin will be looking for support at $60, Ethereum’s next support is near $150.
XRP, one of the most popular and profitable cryptocurrencies of 2017 has failed to hold its gain throughout the year. Its has continued to slide back to $0.3. The revived accusations against its decentralization and distribution have not fared well with the price as well.
Nevertheless, the volatility in the altcoins and fundamental progress or criticism has always brought surprising price actions. Moreover, Bitcoin has been the primary driving force in the market at the moment. Hence, the sentiments around it must also be watched closely.
Do you think that altcoins will break further bearish or an alt-season is on the cards? Please share your views with us.
Nivesh from Engineering Background is a full-time Crypto Journalist 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