The cryptocurrency market is seeing something of a mixed response with the bear and the bull resulting in a roller coaster price chart. Popular cryptocurrencies like Bitcoin [BTC], Ethereum [ETH] and Litecoin [LTC] have seen both bearish and bullish runs since the markets opened today.
At the time of writing, the trend lines on Litecoin [LTC] indicated an upward turn, a clear sign of a bullish run. The support held at $52.35 after it rose from a low of $51.35.
The MACD indicator shows multiple crossovers with the last crossover indicating a bearish drop. The signal line and the MACD line both show Litecoin tending towards the realm of the bear. The MACD histogram reveals a sporadic bullish and bearish graph pattern.
The Awesome Oscillator, which describes the market momentum, paints a picture of the market momentum dropping. The intermittent momentum rises are still not enough to counteract the effects of thee bear reducing the buying selling power of the Litecoin market.
The Bollinger bands show that LTC is in the midst of recovering from a price outbreak. The indicator also reveals that Litecoin has fallen to its lowest support in over a year at $50.48. The bands show that the entire price movement s was contained within the Bollinger cloud, albeit just one bearish drop that broke the support.
The Parabolic SAR shows a mix of bullish and bearish signs with the cryptocurrency majorly leaning towards more drops.’
The Relative Strength Index [RSI] indicates that Litecoin has dropped towards the oversold zone indicating an increase in selling pressure more than the buying pressure.
The analysis backed by the indicators such as the MACD, RSI, and the Bollinger bands show a bearish trend for Litecoin [LTC]. This was further evidenced by the Parabolic SAR as well as the Awesome Oscillator.
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Fall in Bitcoin’s market dominance may be correlated to the fortunes of the altcoin market
The trends set by virtual assets have always highlighted the cryptocurrency market’s inherent volatility and spontaneity. Prices lack symmetry and rarely exhibit consistent growth as different factors come into play to dictate an asset’s valuation.
At press time, the world’s largest crypto, Bitcoin, had stormed past the $11,000 mark and was consolidating to push for a surge over $12,000. The rest of the altcoin market however, apart from one or two minor hikes here and there, has been relatively quiet after collectively surging in the early part of the year.
At the beginning of 2019, a significant number of crypto-assets performed significantly well in a group, wherein most assets demonstrated a prominent hike in their values with little to minor price corrections.
A majority of tokens doubled their valuation until Bitcoin breached the $6,600 resistance. Subsequently, altcoins failed to keep pace as Bitcoin continued to test more resistance limits in the market.
At present time, Bitcoin enjoyed an unprecedented 62 percent dominance in the cryptocurrency market. As its dominance primes itself to climb over the 63 percent mark, many in the community speculate this could be red flags for the altcoin market.
Major cryptocurrency enthusiasts and analysts have stated that altcoins could significantly capitulate if it so happens. However, past events offer a sliver of hope for the altcoin market.
According to CoinMarketCap, the altcoin market has been significantly affected whenever BTC’s dominance has fallen. During the bull run of 2017, Bitcoin enjoyed a dominance of 65 percent and the global market cap hit a value of $402 billion. However, in January 2018, when BTC dominance plummeted, the global market cap peaked at around $710 billion. The dominance was down by half, whereas the global market cap had almost doubled.
A major reason for the same was money funneling into other altcoins after witnessing a shift in momentum from Bitcoin to the rest of the crypto-market. The present market situation may take a similar path once BTC’s dominance falls, opening the door for other virtual assets to take advantage of the scenario.
However, the present rise of BTC is backed by much more certainty than the bull run of 2017. Hence, a repeat of the January 2018 period may be unlikely, and will happen if and only the market sentiment shifts gears drastically towards altcoins.
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