June 22, 2021

Altcoins Bleed Out against BTC as Selling Pressure Continues Mounting

2 min read
  • Bitcoin has actually been on a wild ride throughout the past couple of weeks, and its parabolic growth trend is showing no signs of coming to an end anytime soon
  • Where the market trends in the mid-term ought to depend mostly on Bitcoin and whether it can sustain its upwards trajectory
  • Up until now, altcoins have not been able to match or exceed the growth seen by BTC, with Ethereum’s extreme underperformance possibly being one of the primary factors behind this
  • One trader is noting that it threatens to be heavily exposed to altcoins while Bitcoin is “& ldquo; conducting & rdquo; which it may be better to sit back and wait before starting brand-new altcoin positions Bitcoin

has actually been rallying independent from the remainder of the crypto market, which has actually triggered significant altcoins like Ethereum to post massive losses versus their Bitcoin trading sets.

This trend has been ongoing for over a month now, with BTC’s uptrend taking place in isolation of those seen by other, smaller sized, altcoins.

One trader is now noting that this trend could persist in the near-term while Bitcoin’s price continues rocketing. He competes that it is best to await BTC to stabilize before jumping into altcoins.

Bitcoin Rallies Towards $26,000 as Altcoins Stall

At the time of composing, Bitcoin is trading up almost 5% at its present price of $25,860. This is around the rate at which it has been trading throughout the morning.

This marks a massive increase from everyday lows of $24,000 set yesterday early morning and shows that BTC is still in a firm rate discovery phase.

However, its current strength has actually not been enough to create tailwinds for altcoins, as most are still trading down significantly against their BTC sets.

Analyst Warns against Knife Catching Falling Altcoins

One trader explained in a recent post that investors are taking on major threats by jumping into altcoins right now.

He keeps in mind that altcoins generally can not acquire any serious momentum till Bitcoin cools off and enters a consolidation phase.

“& ldquo; Hope you all had an excellent Christmas. As anticipated, altcoins went through some wild slice following those wicks cutting up traders left and right. If there is one thing I’ve learned throughout the years is that you do not want to be too aggressive on alts when BTC is trailblazing.”

Bitcoin

& rdquo; Image Courtesy of DonAlt. Charts from TradingView.

It’s unclear regarding just how far Bitcoin will rally before it sees some sideways trading and enables altcoins to move higher, but for the time being, its cost action is putting altcoins in a precarious position.

Included image from Unsplash.
Charts from TradingView.