Bitcoin’s Next Move Up Could Create a “Very Painful” Situation for Altcoins: Here’s Why

Bitcoin’s Next Move Up Could Create a “Very Painful” Situation for Altcoins: Here’s Why

Bitcoin noticed a notable upswing at present that allowed it to firmly surmount the heavy resistance it was beforehand going through at $9,200. Today’s worth motion has marked the primary sustained interval of buying and selling inside the $9,000 area that the cryptocurrency has seen since late-February.
Today, most main altcoins haven’t been capable of mirror the positive aspects seen by the benchmark cryptocurrency, nevertheless, with many posting notable losses towards their BTC buying and selling pair.
This comes as one analyst notes that the aggregated crypto market – excluding Bitcoin – might quickly discover itself caught inside a “very painful” scenario that causes many altcoins to see notable losses.
Altcoins Begin Losing Ground Against Bitcoin 
At the time of writing, Bitcoin is buying and selling up slightly below 5% at its present worth of $9,300.
This marks a notable upswing from day by day lows of $8,700 that had been set whereas the cryptocurrency was caught inside a protracted bout of sideways buying and selling round this worth degree.
$9,200 has been established as a big degree for BTC because of the 4 rejections that it confronted right here all through the previous week. The in a single day push above this degree has confirmed to be noteworthy and will assist lead the crypto considerably greater within the days and weeks forward.
An attention-grabbing pattern seen throughout this newest Bitcoin upswing is that the majority main altcoins have misplaced floor towards BTC at present.
Out of the highest 25 cryptocurrencies by market capitalization, just about all of them are buying and selling down towards their BTC buying and selling pairs.
This indicators that the most recent Bitcoin rally might have stemmed from buyers fleeing their altcoin positions in favor of Bitcoin.
Data by way of CoinMarketCap
This pattern isn’t new to simply at present both, as main altcoins like Ethereum have been shedding severe floor towards the benchmark crypto all through the previous week.
Over the previous roughly ten days, ETH/BTC has declined from highs of 0.026 to lows of almost 0.020.
BTC’s Next Rally Could Provide Altcoins with Some Serious Pain
One analyst mused an attention-grabbing chance in a current tweet, explaining that he believes altcoins could also be poorly located within the near-term no matter which course BTC traits subsequent.
He does, nevertheless, word that they may see some notably pitiable worth motion if the biggest cryptocurrency continues pushing greater within the near-term.
“Big bounce at present. A doubtlessly very painful scenario growing if it breaks out in the direction of the subsequent resistance. Each 1% rise in BTC roughly equates to a 6-12% drop towards the BTC pairings for alts,” he defined whereas referencing the chart seen beneath.
Image Courtesy of Pentoshi
How Bitcoin traits all through the remainder of the week ought to provide some vital perception into the validity of this potential path ahead.
It is possible that altcoins will proceed diving additional if this ongoing BTC upswing is being pushed by buyers transferring capital away from alts and in the direction of the benchmark crypto.
Featured picture from Unplash.

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