Altcoins Pump as Bitcoin Faces Bout of Consolidation
Bitcoin has been facing a long bout of sideways trading in the mid-$10,000 region ever since it bounced at its near-term support level of $10,000.
Today, however, this sideways trading has proven to be highly beneficial for altcoins, as multiple cryptocurrencies have posted relatively large gains that have led some analysts to call for an imminent “altseason.”
Altcoins Surge with Ethereum Leading the Way
Bitcoin has remained stable around $10,400 for the past several days, which has allowed most major altcoins to post large gains today, with Ethereum surging over 4%, EOS surging a whopping 8%, and Litecoin surging just under 3%.
This market-wide upswing comes after a long period of intense downwards pressure on most altcoins, and also comes about as Bitcoin’s dominance over the market recedes from its recent highs of over 71% to its current level of 69.7%.
In order for this pump to continue, it is highly likely that Bitcoin will have to continue surrendering some of its dominance over the markets, as it would be impossible for altcoins to continue surging while Bitcoin holds steady unless a fresh influx of capital enters the markets.
CryptoBirb, a popular crypto analyst on Twitter, spoke about the altcoin markets in a recent tweet, explaining that a combination of technical analysis and dreadfully low market sentiment may point to the possibility of an imminent “altseason.”
“k altcoins you got my attention •selloff slows down+MTF downtrend broken •if lows are defended this starts off altseason •it needs HHs&HLs •overall sentiment matches disbelief •people are extremely salty and allergic to any ‘altseason’ mentioned anywhere. is this the time?” he said.
ok altcoins you got my attention •selloff slows down+MTF downtrend broken •if lows are defended this starts off altseason •it needs HHs&HLs •overall sentiment matches disbelief •people are extremely salty and allergic to any "altseason" mentioned anywhere is this the time?🤔 pic.twitter.com/fz1WRk7HcR
While the markets continue to establish some equilibrium, it is highly likely that a few altcoins in particular will be the first to experience the so-called “altseason,” and Ethereum’s surge today may signal that it will soon incur significantly further gains.
Big Cheds, another popular crypto analyst on Twitter, spoke about this possibility in a recent tweet, explaining that bulls have been able to push its price past a previously strong resistance level, which is a bullish development for ETH.
“$ETH #Ethereum – Daily – Bulls breaking through resistance,” he concisely noted.
How Bitcoin trends in the coming hours and days will likely prove to be critical for confirming or rejecting the notion that a rally in the altcoin markets is imminent.
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of EWN or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.