Bitcoin’s resurgent behavior over the week has riled up the community again, with many sharing hopes that this time around the world’s largest cryptocurrency will break its all-time highs. During these fluctuations, many patterns have also been noticed that contributed to the overall behavior of the cryptocurrency market.
In a recent Twitter thread, Vijay Boyapati, the Senior Software Engineer at Peach Inc and a popular Bitcoin proponent, pointed out certain attributes exhibited by some altcoins during Bitcoin’s price movement. He had tweeted:
“In the last bull market, every time #Bitcoin went up, alt-coins went up even more (gaining value in BTC terms). This market seems different (each rally alt-coins lose ground in BTC terms) which makes me hopeful that investors have learned their lesson from the foolishness of 2017.”
The connection between Bitcoin’s growth and the altcoin bounce back has been much talked about by several supporters of the crypto industry. While some like Boyapati stated that altcoins are not a sure shot investment, some claimed that assets like Ethereum, Litecoin, and Cardano will be useful in building a more decentralized system.
At the time of writing, however, Bitcoin was the only cryptocurrency gaining across all time periods, while altcoins like Ethereum and XRP were in the bear’s claws.
Although Bitcoin has grown by more than 200 percent since the start of the year, popular altcoins have followed suit to project a sustained increase in prices. This mimicking ability was again put on display when Bitcoin rallied by 6 percent in an hour, a rally that triggered the altcoin market to rise as well. There has also been some speculation that Bitcoin’s price dominance will hit a blockade soon, creating a window for the altcoins to climb up the charts. This point was brought to light by Josh Rager, a popular analyst who had tweeted:
“$BTC dominance climbing at 65%
Bitcoin’s dominance hasn’t been above 70% since July 2017 & see this as a definite area w/ possible resistance
Majority of altcoins can continue to retest support until BTC dominance drops (which could happen near these levels) so pay attention”