2020-6-3 18:00 |
Last night, Bitcoin price exploded above $10,000 in an over $600 and a 6% price increase during an epic one-hour candle. During this surge, altcoins were decimated in a flash but failed to cause the current BTC dominance downtrend to come to an end. Bitcoin Price Blasts Above $10,000 Causing Altcoins To Bleed Out Right ahead of the daily candle close, Bitcoin price made a successful attempt to break up through resistance at $10,000 and is currently holding above the critical FOMO level. In less than an hour, the first-ever cryptocurrency had risen over $600 and 6%, closing at over $10,200 on Coinbase. The volatility caused the popular cryptocurrency exchange to go down, prompting public uproar throughout the crypto community. Coinciding with the pump in Bitcoin, altcoins surged on their USD trading pairs but bled out against BTC. The inverse relationship caused a 1.5% rise in BTC dominance. RELATED READING | ‘NOT AN ASSET CLASS’ BITCOIN SPIKED BY 100,000,000% SINCE 2011 BTC dominance is a metric that weighs Bitcoin’s market cap against the rest of the cryptocurrency market. This metric has been in a steady downtrend since reaching a high in 2019 of 73% dominance. On shorter timeframes, another downtrend is still intact despite last night’s breakout in Bitcoin. After dominance spiked initially at the pump, it was rejected back toward the bottom of the downtrend channel. The following fall in dominance allowed altcoins to stage a sharp recovery. Alts See Rapid Recovery As BTC Dominance Downtrend Remains Valid The downtrend in BTC dominance may not be over, according to an odd fractal that eerily matches Bitcoin’s recent downtrend from $14,000 to $4,000. If the same pattern plays out, BTC dominance could soon fall to as low as 64%. Bitcoin and altcoins enjoy an unusual and sometimes inverse correlation. Volatility in the first-ever cryptocurrency often results in altcoins crashing, much like what happened last night. Other times, altcoins pump right alongside Bitocin – usually much harder. During last year’s major Bitcoin bull run from April to June, dominance continued to rise as a result of altcoins reaching new lows. RELATED READING | GROWING MISTRUST IN GOVERNMENT AUTHORITY MAY BOOST BITCOIN BUYING The leading crypto asset by market cap has recovered more than 50% of lost gains from all-time high prices. Meanwhile, altcoins are still down as much as 80% across the board. As much as Bitcoin is at an important moment, things are even more critical for altcoins. If another explosive Bitcoin rally crushes altcoins along the way, BTC dominance will grow further and some altcoins could reach zero. If this time altcoins pump alongside Bitcoin and potentially even stronger than the leading crypto asset, much of the lost ground from all-time high could be recovered quickly. During the 2016 and 2017 crypto bubble, altcoins often went on powerful 1000% rallies. If these types of gains return again, altcoins will become even more attractive than Bitcoin for the largest gains possible and will usher in a return of altcoin season. Featured image from Shutterstock. BTCUSD, BTCUSDT, XBTUSD
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