The aggregated crypto market has been incurring major volatility as of late, which has primarily been rooted in Bitcoin’s massive volatility. This bout of volatile trading has led many altcoins to face a significant amount of downwards pressure.
One analyst is now noting that multiple major altcoins appeared to have front-ran Bitcoin’s latest pullback, signaling that altcoins’ near-term price action may act as an indicator that elucidates which direction BTC will head next.
EOS and Other Altcoins Plunge Shortly Before Bitcoin
The past 24-hours have proven to be quite negative for the aggregated crypto market, as many altcoins are currently trading down 10% or more from their daily highs.
This latest drop came about after the markets experienced a relatively short period of consolidation while Bitcoin traded above its previous support level of $10,000, but it now appears that bears have an edge over bulls as virtually no major cryptos have been able to buck the ongoing downtrend.
Interestingly, Hodlonaut, a popular analyst on Twitter, noted in a recent tweet that EOS was the first cryptocurrency to plummet yesterday, which was closely followed by other major altcoins including Ethereum and Litecoin.
“Pretty interesting observation on yesterday’s dump from a friend of mine. EOS dumped super hard before Bitcoin even moved. ETH, LTC and other alts followed suit shortly after, before the big dumping started on BTC. Draw your own conclusions,” he said while referencing the below chart.
Typically, Bitcoin’s major price movements are closely followed by altcoins, so this latest move may signal that this long-established relationship is reversing, which means that traders should closely watch to see how major altcoins trade in the coming hours and days for insight into where BTC will head next.
At the time of writing, EOS is trading up slightly from its 24-hour lows of $3.13, but it has not yet flashed any signs that a bounce or reversal is imminent.
Similarly, Litecoin and Ethereum are both currently consolidating after their latest drop, and both have faced significant selling pressure with each attempted bounce.
In the coming hours and days, it is possible that altcoins will once again front-run Bitcoin’s price action, so any sudden or spontaneous drop/recovery in the altcoin markets may elucidate which direction BTC is heading next.