Bitcoin’s fall into the chasm must have struck terror into the hearts of many crypto investors. When bitcoin goes down, the altcoins go down in spades. While bitcoin recently reached a correction of 23%, many of the altcoins are down 50% or more. That said, the recovery is on its way.
Altcoin holders under water
The life of a retail investor or trader in crypto is possibly one of continuing nagging doubt interspersed with moments of incredible euphoria. The recent bitcoin and altcoins dump must have struck fear and doubt into hearts and minds.
Those who didn’t sell their altcoins are very likely sat in positions that are very much underwater, and the inclination to sell now, and go away to lick numerous wounds, must be on the minds of many.
An altcoin bottom in sight
There is the possibility that the altcoins can still take a further beating if bitcoin should continue to plunge down to the $50,000 region. However, all is not lost, and there is light at the end of the tunnel. The altcoins are bottoming, and so is bitcoin for that matter.
Source: Coingecko/TradingView
Total 3 charts the market capitalization of all the cryptocurrencies, excluding $BTC and $ETH. As can be seen in this chart, the price is holding at $600 billion, with the upsloping bull market trend line offering support below this. If we are to see a bounce, this would be a very good place for it to take place.
Altcoins about to take some dominance from BTC?
Source: Coingecko/TradingView
Not only were altcoins getting beaten down against their USD pairs, but they were also losing ground to bitcoin, and this came to a real peak at just over 57% dominance to BTC. However, it now appears that the dominance could break down further, given that BTC dominance has been rejected at that 57% resistance, and is in an upsloping wedge, which is more likely to break down than up.
Get your positions in early
Trading altcoins is not for the faint-hearted. That said, if the altcoins do start their bounce, any time from now until the next week or so, those who get their positions in early are going to benefit from the potential gains.
Some of the altcoins have already experienced a bottoming out on the weekly stochastic RSI - stand by for some fireworks when this momentum indicator crosses back to the upside.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
