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The cryptocurrency market is a confusing space. Not only do investors need to pay close attention to the Bitcoin market cycles that drive the overall sentiment, but also the relationship between BTC and altcoins such as Ethereum and Litecoin.
As two of the best altcoins with the longest longevity on the market, Ethereum and Litecoin can be reliably used as a barometer of the health of the altcoin space and whether, overall, they show strength or weakness against BTC. A cryptocurrency analyst, looking back on past Bitcoin market cycles, expects there will be one last dip in altcoins before they start growing as much as BTC.
Bitcoin Bull Rally sucks crypto capital from Alts
Over the past few weeks, Bitcoin has risen from a new bullish test of $ 10,000, to over $ 16,000 and continues to rise. The massive “buy signal” caused a wave of retail and institutional FOMO.
Several strong corrections were made, but the dropping buyers present with each slump only pushed the cryptocurrency higher.
A new fiat is coming, which increases the market capitalization of Bitcoin. At the same time, the crypto capital exits the altcoins and flows into BTC, according to the dominance metrics.
Related reading | Ethereum lagging behind Bitcoin could demonstrate Altcoin’s weakness
BTC’s dominance recently hit 66%. It had dropped to 35% shortly after hitting its current all-time high of $ 20,000.
This recurring expectation is what keeps cryptocurrency investors focused on altcoins, hoping to arrive ahead of the next “alternate season”.
But according to a crypto analyst, the alts have one last huge crash left in Bitcoin’s hands, before the official alt season begins.
LTCBTC and ETHBTC could provide clues to altcoin capitulation | Source: BTCUSD on TradingView.com
Ethereum and Litecoin could indicate a final crash in Altcoin, before the alternate season
A pseudonymous trader shared the chart above, placing Bitcoin alongside LTCBTC and ETHBTC. The two trading pairs of altcoins versus BTC overlaid on the regular BTCUSD price chart, could offer some insight into whether altcoins are a buy or have more disadvantages before the point of maximum financial return.
According to the chart, both Litecoin and Ethereum could suffer one last crash due to the continued rise of Bitcoin.
Related reading | Altcoins reach crucial crossings, Crypto’s fate hangs in the balance
The two best altcoins are often used to assess the health of the alt space as a whole, and their weakness against Bitcoin could be revealing.
But as is the case with Bitcoin itself, when things get darker, it’s actually time to buy.
Altcoin sentiment is likely to sink further against BTC, resulting in increasingly aggressive selling. When the supply runs out, however, and things change, those who have sold may regret when the alternate season has finally arrived.
Featured image from Deposit Photos, Charts from TradingView.com
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