Bitcoin and the rest of the cryptocurrency market have recorded a resurgence over the past few months, with the world’s largest cryptocurrency taking the lead on the market’s price hike. While Bitcoin broke yearly records by breaching the $12,000 mark, altcoins were still struggling to maintain their bullish highs.
In a recent analysis, it was revealed that Ethereum was close to breaking its 3-year support line that was first initiated in six months. The general consensus among the cryptocurrency community is that as long as Bitcoin moves in a bullish direction, altcoins like Ethereum and XRP will struggle to commit to going to the moon. Josh Rager, a popular analyst, tweeted,
“Candle body is making a new low for Ethereum as long as Bitcoin continues its Dominance % this will not go well for ETH or most alts. Bitcoin should be the focus at the moment”
At the time of writing, Ethereum was trading at $290 after some sideways movement saw the second largest cryptocurrency move from $264.2 to $334.31, and then back to its current hold at $290. Some members of the community claimed that there was an altcoin surprise right around the corner, where “while everyone is dumping alts for BTC, altseason is going to leave a lot of people on the sidelines.”
The pattern in the market has been that altcoins reflect the same behavior as shown by Bitcoin. This was again on show when Bitcoin’s fall below the $11,000 mark triggered a crash in Tron, Ethereum and XRP prices. While Ethereum fell by 11 percent in a couple of hours, Tron recorded a 5.03 percent crash with a market cap of $2.075 billion. At the same time, XRP plunged by 4.62 percent and Vitalik Buterin’s Ethereum fell by $4.55 percent.
Some other proponents of the cryptocurrency market have also predicted a future where altcoins would suffer when Bitcoin rallies. Vijay Boyapathu, Senior Software Engineer at Peach Inc., stated,
“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.”