The altcoin markets struck to lows as price is now testing the monthly opening levels in February. The coronavirus havoc has spread across the entire of the west now, while China continues its effort to eradicate it’s effect.
The resemblance in the price action of the top three altcoins – Ether, Bitcoin Cash and XRP is evident. The situation is similar with Bitcoin, however, the extend of the drop is greater on altcoins.
Bitcoin’s dominance rose to 65% as investors seemed to take refuge in Bitcoin. Prominent financial and crypto analyst, Mati Greenspan states in his tweet recently,
Altcoins are out of season… In lieu of the #coronavirus uncertainty, I’ve moved my entire portfolio @eToro to $BTC until further notice.
The fear and greed index of crypto-markets continues to test the lower bounds. Nevertheless, it has seen far lower levels during November 2018 and September 2019 bear markets.
Top Ether [ETH] trader tweeted around the slow-down of the sell-off in ETH around $180, if crypto buyers step in at the moment, the price could consolidate from here.
$ETH showing continued declining momentum on the sell offs.
Can it hold or will sellers come through too strongly? pic.twitter.com/stPM6aEa7j
— Cold Blooded Shiller (@ColdBloodShill) March 12, 2020
Currently, the total market capitalization of altcoins has reached at the critical support region from the medium term parallel range. A drop further could drive prices to lows attained during the recent bear market in late 2019.
Moreover, the previous time, the price of BTC was at par with current range. A close look at the two charts reveal extreme correlation in price movements. Currently, Bitcoin (bottom) is leading the bearish charge with a break below support around $8700-$8800.
The pandemic scare from corona-virus now threatens a global recession. Hence, altcoins which are far more riskier than BTC face could face further sell-off.
Do you think that altcoin investors will keep the bullish trend alive? Please share your views with us.
