The crypto market has taken a strange turn - the altcoins are falling in value while Bitcoin seems to hold its own. There is a decoupling of some sort between BTC and the rest of the cryptocurrencies. How has this happened? What is going on?
First, the trends for the other nine altcoins in the top ten is bearish. Secondly, perhaps the most interesting is the 50-day moving average crossing below the 200-day moving average. This is known as the “Death Cross”. As defined by Investopedia, a death cross is a technical chart pattern indicating the potential for a major selloff.
That major selloff is when an asset’s short term moving average crosses below its long-term moving average. It must be said that not all altcoins in the top ten have the death cross. Binance Coin and Bitcoin SV are examples of this. The selloff has been baffling as just a few months ago, Litecoin was leading the charge in the markets. Could there be a loss of belief in the market for altcoins?
Bitcoin’s price is moving sideways, in other words, consolidation. We all remember what the pundits were saying just a few weeks ago. I wonder why people listen to these guys. Truth be told, no one is sure what Bitcoin will do. Bitcoin has recently increased its dominance in the crypto space. As of this writing, Bitcoin has a 70.02% dominance. Some are already predicting Bitcoin might have a 71.4% dominance.
Like many of you, I do not expect the altcoins to continue their bearishness forever. Price contraction will ultimately bring about price expansion. These altcoins are bound to recover. To what extent is not known. One thing we can all agree on is quite a few altcoins are not useful. I think we can safely predict that most of these will disappear or just abandoned. In some instances, there is zero liquidity for trades to take place. I suspect we might be left with between 50 and 70 altcoins. Could this be the beginning of the death of most altcoins? I don’t know nor am I sure but then again, your guess is as good as mine.
Swap your cryptos here:
Nosa Capital concentrates its' expertise in Strategy, Business Development, Project Management, Project Finance, Trending, and now cryptocurrencies