The correlation between Bitcoin and Altcoin prices has become a market prediction factor over the years. While the outcome of their trend patterns may not always be synchronized, some underlying behaviours have remained constant.
There has been a surge in the price of Bitcoin lately which has seen the pioneer cryptocurrency overcome some significant resistance and now trading above the $5,000 region. In this same period, a lot of ALT have experienced massive upward movement in price, with some gaining over 100% of their lowest price since the pullback from the January 2018 highs.
After the initial surge, Bitcoin has slowed down and is trading sideways around the $5,200 price region. Most analysts see this behaviour as a preparation for another strong move towards the $6,000 region.
Incidentally, while Bitcoin consolidated and traded sideways, most ALT registered losses, shedding some of the profits that they have made recently. This behaviour sometimes makes the correlation analysis between Bitcoin and ALT confusing. However, taking a closer look at previous behaviours suggest a momentum gathering period for these ALT whenever they pullback around a strong Bitcoin resistance region.
As the leading cryptocurrency is expected to break through the resistance around the $5,350 region, the market appears to be getting ready for another Altcoin rebound cycle. Altcoin rallies are usually the most active experiences for the cryptocurrency market due to the rate of volatility that is associated with them.
During these periods, Altcoins have a habit of leading in terms of movement instead of trailing Bitcoin performances. Early signs of this are already in place with a number of Altcoins already in front.
EOS registered a 4.77% increase, while the rest are performing almost at the same level as Bitcoin with an average of 3% increase within the period under consideration.
A popular analyst known by the Twitter handle SwissQuant, suggests that the market is almost set for a bullish season for Altcoins.
“I know the total market cap shouldn’t be used for TA but it shows that the alt spring might be close to over.”
CryptoFish provides the latest news, educational insights and a secure place to buy various cryptocurrencies.
At CryptoFish, we offer a very simple way for you to instantly purchase leading cryptocurrencies like Bitcoin, Ethereum, Litecoin, Bitcoin Cash and Ripple using your debit or credit card online.
CryptoFish does not store your credit card details, encrypts your personal information and is GDPR compliant, making it one of the safest and most secure options. You can trust CryptoFish to easily, securely, and instantly buy cryptocurrency.
If you have any questions, please check out our FAQ section on the website or visit our Educational Portal. Our super-friendly CryptoFish support team is also here to assist you. You can drop them an email or chat live on the website. To chat, simply type your question into the chat box on the bottom right hand side of your screen.
By signing up for updates you will receive the most relevant global news stories. The CryptoFish News Desk cuts through the online hype so you don’t have to.