Bitcoin’s price action has been overshadowed by the intense uptrends observed by many altcoins in recent weeks.
The recent stability of the benchmark cryptocurrency has provided an ideal backdrop for smaller crypto tokens to compete against, with investors weakening BTC’s trading volume and liquidity as they shift their focus to altcoins.
This trend may not be too long since Bitcoin is now showing some signs of strength.
An analyst believes the major digital assets – such as Bitcoin and Ethereum – will ‘take away’ altcoins gains once their upward trend begins to pick up steam.
This could mean that the bullish altcoin market is likely to fall in a short-term downward trend.
Bitcoin and Ethereum show signs of strength, but Altcoins remain silent
In the past 24 hours, the cryptocurrency market has seen a shift in dynamics between the major digital assets and the smaller ones.
In recent weeks, altcoins have made huge gains on a daily basis, while Bitcoin and Ethereum both got stuck in a protracted period of sideways trading.
This consolidation was continued by an exodus of traders, all of whom shifted their capital and attention from BTC and ETH in favor of smaller, more volatile assets.
However, yesterday, the two largest cryptocurrencies triggered a notable rise that came about suddenly, with Bitcoin peaking at $ 9,600 while Ethereum rose to $ 270.
Altcoins did not reflect this momentum, and many even declined simultaneously.
This suggests that there could be an inverse correlation between Bitcoin and smaller altcoins.
If this is the case, it is imperative that Bitcoin remain within the macro trading range between $ 9,000 and $ 10,000 for the upward trend of much smaller tokens to expand further.
Here’s how BTC could “empty” Altcoins
A respected trader recently came up with the possibility that altcoins may not post a positive price action while Bitcoin and Ethereum rise higher.
In a tweet yesterday, he explained that he believes altcoins will see their BTC trading pairs fall in value as the benchmark cryptocurrency pushes towards its high time frame resistance towards $ 10,500.
When BTC and ETH start trending. I would be careful about craving alts. Especially if this is the beginning of a new BTC trend upwards. The most likely outcome would be that the alt / btc pair ratios deflate while BTC passed 10.5 k in that scenario. I wouldn’t try to blur the first move either, ” he said.
Bitcoin still has a long journey ahead of it, but it could top $ 10,000 as the $ 9,000 region has been heavily resisted.
Despite seeing some strength yesterday, it also remains unclear whether or not this latest move really symbolizes a changing trend.
Featured image from Unsplash. Pricing data from TradingView.