Altcoins-Bitcoin-Market-Comparison-Analysis

6 lip 2020

Hello Traders Investors And Community, welcome to this analysis about the comparison between the current situation in altcoins and bitcoin, the differences, and what we can expect in changes between these two major factors in the whole cryptocurrency market. It is important to take note that we have seen some volatility moving into the market the last times which added to the differences and showing up a stronger altcoin market on the short-term in comparison to the bitcoin where bitcoin provided some important signals which provided the difference, now this does not mean altcoins will keep stronger as this is a shorter time movement but when it holds on longer it should not be kept by hand that the difference between the two increases and confirms on a longer time scale similar to the alt season we have seen after the major all-time-highs confirmed in 2017 and bitcoin fell from almost 90 % to 40 % in dominance, therefore, it is important to keep this mechanism in mind and do not ignore it because this can provide profitable in the end with investment and trading decisions.

Altcoins:
As you can see in my chart the altcoins market cap formed a clear inverted head and shoulder formation which recently confirmed to the upside, in this case, it is highly important to look at it as the index representing the whole altcoin market cap with the different single altcoin, therefore, there are big differences between the specific coins and their movements where some are looking highly bearish where others already formed new highs, therefore, it is significantly meaningful that the different coins should be distinguished here and that there are coins with a bigger market cap who representing a stronger part in this index. But what the overall picture now provides is a stronger move to the upside where altcoins already took out the falling resistance, formed a clear formation and confirmed this head and shoulder formation whereas the formation in bitcoin is not that well established and strong like the coins and it's still below resistance.

Bitcoin:
When we look at bitcoin now and the formation which is building below the resistance it looks more as a bear flag than an inverted strong head and shoulder formation which successfully confirmed. Therefore the consolidation can still turn bearish when bitcoin does not manages to move above the falling resistance and confirm it sustainable as support. There is still a possibility for bitcoin to move higher in the short term but we should keep in mind that there are strong resistance levels and when bitcoin does not manage to form solid and strong momentum the short term trend can change in the opposite direction. If bitcoin manages to climb higher and take out the important resistance it can form the solid counterpart to the altcoins especially when altcoins lose in momentum this can happen in a consolidation where altcoins fall more than bitcoin and bitcoin gains in volatility and strongness.

Conclusion:
Coming to a termination we can definitely take note that the overall altcoins measured in market cap showing some stronger momentum and clearer formation in the short term compared to bitcoin now that does not mean that this trend holds on forever but when it holds on more and altcoins increase more in price solidity we should keep the possibility for an altcoin season in 2020 or 2021 in mind where there are coins that show some solid movement and high gains to the upside while others showing moderate gains and or bearish signs. This does not mean that bitcoin goes completely bearish but it means that there can pop up good opportunities in the altcoins to make good gains as we saw it already happening in the past. In overall market cap dominance and measured market cap bitcoin will definitely stay in number one place as it is the leading major and the first one on the screen but this is not a contradiction that altcoins can gain in strength again similarly to the altcoin season seen after the bull market peaks in 2017.

In this manner, thank you for watching, support for more market insight, have a great day and all the best to you!
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Information provided is only educational and should not be used to take action in the markets.