Bitcoin’s correlation with the rest of the altcoin market has been in evidence for a few days now. While the latter was once surging on the back of the world’s largest cryptocurrency’s price action, over the last few days, thanks to corresponding drops in BTC’s value, the likes of Litecoin, Cosmos, and Dogecoin have all fallen on the charts.
Bitcoin’s bullish recovery may be key to the market’s alts climbing back to their previous highs.
The cryptocurrency popularly dubbed the silver to Bitcoin’s gold, Litecoin was ranked 9th on CoinMarketCap, at the time of writing. Like BTC, LTC too has been a victim of bouts of volatility lately, with the altcoin’s price action heading south on the charts since its local top on the 14th. Since then, Litecoin has been on a gradual downtrend, with the same punctuated by a series of sharp price depreciations worth over 5% on the 4-hour chart.
At the time of writing, however, some recovery was underway, with LTC’s latest price candle flashing green signals.
Despite the same, LTC’s technical indicators were leaning towards the bears at press time. While the Parabolic SAR’s dotted markers were well above the price candles, the Chaikin Money Flow was under zero, regardless of a recent uptick. This highlighted the strength of capital outflows in the market.
The altcoin was in the news recently after the Litecoin Foundation revealed that its MWEB is now “code complete.”
Like Litecoin, Cosmos too has been at the end of a downtrend after hitting its local top on the charts a week ago. Unlike LTC, however, ATOM’s has been sharper, with the altcoin noting 9.4% and 7.9% price falls in a matter of 60 hours. At the time of writing, the crypto was back at square one, trading at levels noted in the first week of March and most of February.
The scale of the bearishness in Cosmos’s market was underlined by the alt’s indicators as while the Bollinger Bands projected a degree of near-term price volatility in the southbound direction, the MACD line was well under the Signal line.
A week ago, blockchain firm Bison Trails announced that it will be launching staking and node services for Cosmos.
Dogecoin, the crypto-market’s most-popular meme-coin, has found itself in the news a lot over the past few weeks and months thanks to a series of unexpected price surges and some expected endorsements from the likes of Tesla’s Elon Musk. At the time of writing, however, DOGE, like its fellow alts, was heading south, with its value depreciating significantly over the last 7 days alone.
What’s more, DOGE’s trading volumes were stagnating too, with the same well below the levels seen when the month began.
While the Relative Strength Index was threatening to drop into the oversold zone, the Awesome Oscillator pictured an uptick in bearish momentum, with its histogram flashing red signals.