Without confirmation of Bitcoin, Altcoin's growth could be a trap

remains under moderate pressure on Thursday and acts near $ 46.3,000, which corresponds to a decrease of 12.5% ​​compared to the highest level of Tuesday. In the meantime, the overall capitalization of the cryptom market has exceeded $ 2.1 trillion dollars this morning.

Overall, the trend of the proportion of Bitcoin on the cryptom market is declining, with the exception of a short time in which old coins collapsed after the first cryptocurrency. The proportion of Bitcoin in the total capitalization fell to 40.8 %, the lowest level since May when an old coin sale temporarily reversed.

This time too, a repetition of the same scenario is to be feared. The decline in the Bitcoin share, which was caused by its falling price instead of exceeding the increase in old coins, has repeatedly developed into a massive surrender of buyers.

The most striking example of this pattern we saw at the end of 2017 when BTC gave in mid -December and fell his share in the following month to less than a third. The trend then turned around and old coins were in a continuing sale. Many of the old coins at that time still have an impressive distance from the record values ​​of January 2018.

The cheapest environment for the crypto market is that Bitcoin increases more slowly than old coins. A drop in the market flagship risks a sharp sale of old coins in September.

and in this case the technical image must be observed in particular. The price reached 43,000 during the sale on Tuesday, when the simple sliding 50-day and 200-day average cuts, and the fight for these levels is far from over.

If Bitcoin succeeds in staying above this level by the end of the week, the chances that buyers will come down will increase significantly, which would pull the price up. In this case, the old coin position could recover even faster, and there will be a more important reason for the current increase.

If BTC/USD falls below its most important sliding average, this could trigger a new crypto winter that repeats the situation of May 2018. At that time, BTC lost more than 60 %in the next seven months after it had fallen under the same average values ​​and managed to return to this level a year later. In our case, this could lead to BTC/USD falling into the range of 22 to 28,000 USD and rewriting the lows of last summer.

The FXPro analyst team