Ouch. Bitcoin (BTC) has not developed as well in recent times. However, the Altcoins were even worse.
The winners of the recent tug of war between bulls and bears have recently been determined.
In just a few minutes, the price of bitcoin has dropped between US $ 400 and US $ 500, resulting in a significant loss by BTC of $ 10,000, $ 9,800 and possibly $ 9,600. At the time of writing, BTC is negotiating less than US $ 9,700 after losing 4.5% in the last 24 hours.
The altcoins were literally destroyed by this flash crash. According to CoinMarketCap data, the dominance of bitcoin – the share of the cryptocurrency market made up of BTC – has returned to 70%. TradingView data shows an even more shocking story. According to the Chartservice, the domination of Bitcoins is approaching highs for the year.
Analysts expect Ethereum, XRP and others to outperform. Now, the relative value of the alt compared to bitcoin has dropped considerably.
Analyst Crypto Michael writes: According to him, Altcoins (and BTC) have finally reached their low point. Crypto Michael in a tweet:
"At this point, everyone is turning into a bitcoin maximalist, while Old is showing signs of weakness." If we repeat what happened in 2015/2016, Altcoins starts to outperform BTC after finding its first local hollow in the bull market. "
The current status of the market, I believe we are in.
Combined with the dominance level of the altoin and other indicators, I think we are in the final trap before this market is ready to take off (especially the oldcoins).
Why? Cycles. pic.twitter.com/E3GGHBHCKE
– Crypto Michaël (@ CryptoMichNL) August 21, 2019
If history repeats itself, the Altcoins should grow again and mark the end of the current rally of Bitcoin dominance. This is not enough. Analyst Willy Woo expects that the indicators "Altcoin capitalization in Bitcoin capitalization" and "Altcoin market volume in Bitcoin market volume" are now in a support zone.
The two indicators mentioned above are currently oriented towards two important lines of historical support. A repetition of history would bounce the altcoins in the coming months – and could start with what crypto-traders call a "legacy season".
Proof of text: newsbtc