A pseudonymous trader “CryptoHustle” stated that BTC consolidation would be beneficial to both Bitcoin and Altcoins. He stated:
“This correction on $BTC at ATH resistance is the best thing that could happen to the trend… 1. The longer we consolidate the more momentum the $20K breakout will have. 2. $BTC consolidating likely means Alts will bounce hard and continue to rally.”
In the previous bull cycles where Bitcoin reached a new ATH, Altcoins rallied consequently. In 2014, when BTC hit a fresh ATH of $1,200, Litecoin rallied to highs near $50. Ethereum and Ripple also rallied significantly after Bitcoin’s halving in 2016, which set the stage for the 2017 rally. ETH hit its all-time high at $1,420 in January 2018, barely a month after Bitcoin hit its near $20k ATH in December 2017. Similarly, XRP followed suit to hit its all-time high of $3.34.
A dwindling BTC dominance may indicate the nearing of a new ‘Altseason’. BTC dominance decreased from its mid-November value of 64.8% to stand at 62.6% at the time of writing.
The Ethereum 2.0 went live today, on December 1. The second-largest asset could jumpstart the ‘Altseason’ if it rallies following the launch of Ethereum 2.0. ETH hit the new 2020 high at $636 but was rejected based on a “sell the fact phase”. Though ETH decline may be extended, it is necessary to note that that there might be pullbacks before Altcoins begin their much-anticipated season. The reversal will offer ‘buy the dip’ opportunities. ETH presently trades at $573.
Several on-chain metrics indicate that large investors are driving the price of the 5th largest asset. A recent report indicated that the number of whales holding between 1,000,000 and 10,000,000 coins has increased by two in the prior week. Considering the worth, it is a huge jump.
LTC Large Transactions Chart, Courtesy: Intotheblock
LTC Large Transactions Chart, Courtesy: Intotheblock
Ripple (XRP)
Image Credit: IntoTheblock, Shutterstock
