With Bitcoin on the up, what are altcoins waiting for?
Bitcoin’s latest bullish rally has elated retail investors and BTC HODLers over the last 3 days. In fact, the king coin moved up by 13% after 13 June, breaching the $40k mark on the way, before corrections set in again at press time. The question, however, is how has this movement impacted all the other altcoins in the market.
Since altcoins almost all the time shadow the king coin’s movement, could this rally also benefit them? Or would this prove to be altcoins’ end?
Where does Bitcoin stand?
Popular analyst Michaël van de Poppe answered these questions recently. Bitcoin had been heading towards a death cross for a while now and while according to him that is still imminent, it could help in stabilizing the active rally.
Poppe asserted that it is important for the coin to gain some sideways movement first before breaking past the Moving Averages (red and orange lines in the chart). In doing so, the coin would be placed in a heavy short squeeze and the next resistance would be placed in the $48k – 49k region. This region was also the breaker around May 13, before the coin started to fall south. He added,
“In order to have upwards momentum, you want to get those crucial levels [$48k – $49k] to become support again because only then you can continue grinding”
What about altcoins?
According to the analyst, once BTC’s movement becomes sideways, the altcoins would follow suit. Such a projection is based on the past as every altcoin fell down at the same time as BTC crashed, primarily due to the panic that ensued in the market. Thus, when Bitcoin consolidates again, altcoins would get back their price momentum.
“The best nature for the altcoins to move is when Bitcoin consolidates and doesn’t be volatile as it is regularly…”
Altcoins are yet to hop on the rally train as BTC’s sudden upturn has put pressure on them to perform like the king coin. If Bitcoin goes through another round of volatility/price spike, it could make things truly difficult for the altcoins.
However, Bitcoin will not be making an impulsive move anytime soon due to the presence of multiple resistances on the upside, especially since BTC is still far away from its ATH.
“This is the period [ consolidation under 48k ] where altcoins will start outperforming Bitcoin…The longer that Bitcoin is going to act sideways, the more likely altcoins are going to continue their run and get back to pre-crash levels.”
Poppe also analyzed Ethereum [ETH], Chainlink [LINK], and Fantom [FTM]’s movement paired against BTC. According to the analyst, Ethereum, for instance, is still holding on to a critical level of support over which a period of steady consolidation can be expected.
“This happened in 2016 and 2017 as well, after which a new impulse wave happened,” he added.
As far as Chainlink and Fantom are concerned,
Probably a little more consolidation before we'll see $35 and a continuation of the uptrend. pic.twitter.com/3m56Q1jZh5
— Michaël van de Poppe (@CryptoMichNL) June 14, 2021
— Michaël van de Poppe (@CryptoMichNL) June 15, 2021