Apr 22, 2019 22:30 UTC
Apr 24, 2019 at 15:46 UTC
Altcoins Are Losing Out To Bitcoin In The Current Bullish Market
The crypto market has exploded since the beginning of this year and how. Who would have thought that after taking a massive beating in 2018, the crypto market would bounce back so early on in 2019. But that is indeed the reality of what cryptocurrency has achieved so far this year.
If you look at the current market capitalization, then you will notice the impressive growth of the valuation of the crypto market. It is up nearly $52 billion year-to-date, boosted by the general opitimism around bitcoin.
What is however unusual, is how the Altcoins have performed in the wake of Bitcoin’s race to the stars. Usually market activity has shown that whenever bitcoin has demonstrated a sideways price movement or has stuck to a tight price range, Altcoins have done equally well. The story is however a little different this time around.
These past few weeks, bitcoin has been relatively stable in the $5,200 to $5,300 range, but there has been no upside momentum of altcoins. This has led to a certain disillusionment amongst traders who are choosing to dump their altcoins in favour of bitcoin.
When asked, one trader blamed altcoin’s inability to to test a key resistance level during the weekend, as the primary reason for the frenzied dumping of altcoins:
“Both were rejected from resistance, altcoins a bit harder. A lot of my confidence in altcoins the past few days was predicated on smallcap dominance being able to break up. After this rejection, I’m significantly less interested in altcoins. Shifting my portfolio heavier skewed to BTC.”
This could possibly be because most traders are looking to ride on Bitcoin’s ongoing success, as they expect to see the price of the cryptocurrency go up in value as and when the days progress. Many tokens in the past few hours have recorded losses in the range of 5 to 11 percent against both bitcoin and the U.S. dollar. These include Basic Attention Token (BAT), Crypto.com Chain (CRO), Ravencoin (RVN), and Golem (GNT).
We have to wait out and see if there is any improvement in the position of altcoins in the market.