The current crypto winter and bear market has been brutal for bitcoin investors who are now underwater, but it has been even worse for many altcoin holders.

Most of the thousands of altcoins on the market have fallen as much as 99% from their all-time highs, have hit extremely oversold conditions, and are at all-time rock bottom in terms of sentimentality. However, according to a crypto analyst, altcoins are on the verge of breaking long-term downtrend resistance and an “old season” may be upon us.

Analyst: Altcoin Crypto Market Cap at Pivotal Resistance Point

Altcoins like Ethereum and XRP have fallen much further from their all-time highs than their oldest brother, Bitcoin. Bitcoin is down about 85% from its previous high in December 2017, while cryptocurrencies number 2 and number 3 Ethereum and XRP are each down 90% from their highs.

Related reading | XRP caution? Industry Responds to JP Morgan’s ‘JPM Coin’ Crypto Announcement

The added selling pressure has sent sentiment around altcoins at extreme lows, but the tide could soon turn if critical resistance can be broken.

According to a graph by well-known crypto analyst GalaxyBTC, altcoin market cap – an aggregate of total crypto market capitalization minus BTC – is at a crucial overhead resistance that has served as such since January 2018.

If we manage to push that through, it’s ON. #altmarketcap

– Galaxie (@galaxyBTC) February 18, 2019

The first signs of an “old season” can already be seen: Ethereum, EOS and BCH all recorded gains of 15-25% on that day, while Bitcoin only gained 8.5% in comparison. The rest of the altcoin market today is a sea of ​​green as a noticeable change in sentiment is taking place in the crypto space.

Bitcoin still has BTC dominance to suffer long before the downtrend is broken

GalaxyBTC also shared some thoughts on a pattern that is commonly found in cryptocurrency trading. The analyst noted that it often collapses after building BTC dominance – a metric that weighs Bitcoin’s market capitalization against the rest of the crypto market – resulting in an increase in altcoin dominance, also known as the “old season” will.

1. Build the $ BTC dominance
2. Breakdown
3. Postseason
4. Rinse and repeat.

Furthermore, the weaker the dominance uptrend, the longer the old season is, and this is the weakest so far.

Expects dominance to drop below 30% and the longest old season to date. #crypto

– Galaxie (@galaxyBTC) February 18, 2019

The reason for this could be a normal flow of capital to and from Bitcoin in altcoins, restored confidence among crypto market participants, or possibly the fact that most altcoins broke the downtrend resistance while Bitcoin did not.

Finally, we have to acknowledge that the bear market has not yet broken.

Here is the line of resistance that we have been following. As you can see, we’re not even close to breaking it yet.

– Mati Greenspan (Tweets are not trading advice) (@MatiGreenspan) February 18, 2019

A chart shared by senior market analyst for eToro Mati Greenspan shows that Bitcoin still has a long way to go before it hits downtrend resistance. The resistance dates back to January 2018 after the cryptocurrency’s first parabolic advance was broken, triggering the bear market that continues to this day.

Related reading | Below doesn’t matter, the last time the general population can afford all of the BTC

Altcoins and Bitcoin are closely correlated, so a strong rally in the altcoin market could help restore confidence in Bitcoin and drag Bitcoin up through resistance along with the rest of the cryptosphere.

Featured image from Shutterstock

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