Cryptocurrency News

Altcoin Price Analysis If Bitcoin Hits Over $50k – Market Boom.

The Altcoin market has plunged steeply on 14th Feb. after the price of the leading cryptocurrency Bitcoin [BTC] achieved a new all-time high of over $49k.

The timing of the altcoin market’s drop was noteworthy as it corrected as BTC was rallying, which usually doesn’t happen.

The primary reason for the pullback was indeed when the worth of Bitcoin rallied to a new record high, it sucked out most of the quantity within the cryptocurrency market. This naturally caused the market to sway towards BTC, contributing to the pullback of altcoins.

And, Ethereum [ETH], which frequently leads the momentum of the altcoin market, fell sharply against Bitcoin.

The combination of those two factors, combined with the uncertainty around Bitcoin at the $50k resistance level, has amplified the selling pressure on the altcoin market.

A pseudonymous trader referred to as “Kaleo” emphasized that predicting Bitcoin’s rally to $50k was arguably straightforward.

But, whether BTC breaks past $50k remains a crucial question that might decide the direction of the cryptocurrency market’s near-term price cycle. He explained:

“So this move up to solely beneath $50K was incredibly easy to identifyThe important question is what happens next. I’m leaning toward brief consolidation and breaking out of the range, but I’m undecided. How long will it take? Does it get rejected? Idk.”

If Bitcoin consolidates first before breaking out of $50k, theoretically, this trend would likely benefit altcoins within the foreseeable future.

WIthin a Bitcoin uptrend, altcoins tend to surge when BTC is consolidating after an initial impulse rally. However, when BTC is rallying or seeing a small pullback, altcoins often see large price drops against both BTC as well as USD.

Presently, Bitcoin is maintaining its bull run market structure, which might relieve a number of the selling pressure on the altcoin market within the foreseeable future.

Scott Melker, a cryptocurrency trader and analyst, said that Bitcoin is constant to ascertain consecutive bull flags.

Bull flags are a market structure in technical analysis that materializes when the asset breaks out after consolidating within a variety.

This typically demonstrates a staircase-like rally that’s sustainable over the long run. Melker added:

“Little bull flags everywhere. Finally closed above $48.2k after 7 rejections. Consolidation below resistance usually results in an opportunity up.”

As long as Bitcoin defends the newly established $48.2k support area and consolidates between $48.2k and $49.7k, another breakout is more probable.

If Bitcoin sees another breakout, this time, the altcoin market is probably going to rally in tandem with Bitcoin after seeing an initial dip on BTC’s primary impulse rally.

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