Bitcoin has been caught in a bout of sideways trading as of late which has proven to be a very beneficial thing to the aggregated crypto markets, as multiple major altcoins have been able to post significant gains over the past 48 hours.
This upwards momentum across most major alts has come about as BTC’s dominance over the market is beginning to recede, and a continuance of this drop in its dominance could help fuel a mid-term alt rally at Bitcoin’s expense.
Bitcoin Inches Lower as Altcoins Rally
At the time of writing, Bitcoin is trading up marginally at its current price of $10,290, which marks a slight climb from its recent lows of below $10,200.
Although Bitcoin incurred a slight rejection at its recent highs of $10,400, its drop to the lower-$10,000 region was tempered by the rallies that multiple major altcoins have incurred, which appears to have slowed BTC’s descent.
It is important to note, however, that the rallies that Ethereum, XRP, and other altcoins have experienced over the past 24-hours or so has led Bitcoin’s dominance over the markets to plummet, and this dominance will likely have to continue dropping in order for these cryptos to continue climbing higher.
Chonis spoke about this drop in dominance in a recent tweet, explaining that he is closely watching to see how altcoins respond to any major Bitcoin movement.
“$BTC – (dominance) rolling over today as #alts are showing notable bullish divergence across the board. The real test for alts is what they do when #bitcoin makes a bigger move… still over 70%,” he noted.
$BTC – (dominance) rolling over today as #alts are showing notable bullish divergence accoss the board. The real test for alts is what they do when #bitcoin makes a bigger move… still over 70% pic.twitter.com/URu9yUkqMu
As for where Bitcoin might head in the near-future, analysts are noting that the crypto may still see some bearish near-term price action despite the positive market conditions that are currently surrounding altcoins.
Mr. Anderson, a popular crypto analyst on Twitter, spoke about this in a recent tweet, explaining that BTC is currently trading within a large descending triangle and is currently within a bear channel, which may point to the possibility that a drop is imminent.
“$BTC: The Bears have held control of the Low TF’s for the majority of time since the June blow-off top. We a sym triangle inside of the larger descending triangle inside of a [bear]channel. We could have some excitement inside of a few as price bounces or breaks a key TL,” he explained while pointing to the below chart.
The coming hours and days will likely prove to be quite illuminating as to where Bitcoin and other major cryptocurrencies are heading next, but it is important to note that without a fresh influx of funding into the markets, it is probable that any further rallies in the altcoin markets will primarily be fueled by investors moving funds away from BTC.