The aforementioned increase in the Bitcoin domain puts the recovery experienced by the altcoins at extreme risk.
Although we may think that the collapse has not been so pronounced. The truth is that; according to experts; The crypto market remains more than vulnerable to a fearsome marked price correction.
To have a reference point; Ethereum (ETH), Bitcoin Cash (BCH) and EOS have fallen on average 20%.
One of the situations that has most marked this new fall in prices is that; The migration of structural and fundamental analyzes that traditional institutional investors seen in recent years, such as the well-known "Shoulders Head Shoulders". These indices have begun to mark the “mass sales” signal.
For example, in the margin, futures and ETF markets, crypto traders have begun to press the BTC price level so that there is a significant short-term percentage correction.
Bitcoin (BTC) collapses and altcoins give up
It has never been a secret to anyone that movements in the BTC market immediately impact the entire crypto market in general. This, in part, is due to the fact that the majority of the fresh money that enters the cryptocurrency does so through Bitcoin.
This in turn, what causes the altcoins tend to increase only when the price of Bitcoin is recovered.
For that reason, when the price of Bitcoin enters a bear run, the altcoins market reacts as if it were a mirror, with downward movements and intensified by the lower liquidity.
During a bear run, altcoins often outperform BTC and during a bear market, they are likely to have a lower performance against BTC.
Bitcoin (BTC), is considered by the great capitals of the world that have decided to invest in the crypto market so far; As a high risk asset.
In times of uncertainty, such as we are currently living; we owe to countless factors; such as Coronavirus 😷; risk assets; like Bitcoin or gold, they tend to have poor performance compared to all other instruments.
But, to the bad news of altcoins, assets that have extreme levels of risk are unlikely to maintain their momentum in the short term. So perhaps we are facing the end of altseason; if there ever was in this new year.
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Posted via Steemleo
@exe8422 the issue is that most altcoins tend to follow the direction of the bitcoin,so if bitcoin rises most altcoins tend to rise too and vice-versa....
Posted via Steemleo