ETH and altcoins may seek space after a BTC crash
Bitcoin (BTC) has once again proved why it is the king of cryptocurrencies, reaching the annual high of $ 13,858 earlier today. However, the Bitcoin movement close to the intended $ 14k target was short-lived as it has since corrected heavily to $ 12,885 and is now struggling to maintain the $ 13k support area.
There is no doubt that Bitcoin is in the midst of a bullrun, but its momentum for the year may have come to an abrupt end with its momentum to $ 13,858. If that is the case, Bitcoin will undergo a consolidation phase in the coming months and possibly return to its upward trend in the first quarter of 2021.
Bitcoin’s dominance is currently at 63%, after falling to as low as 57% in early September. The last period of time and the smallest bitcoin dominance was when BTC dropped to $ 10k and consolidated at this level for a week. The beginning of September was also the same period when Ethereum set an annual peak of $ 490.
In addition, the September Bitcoin hike so far has had a negative impact on ETH as well as altcoins. BTC has stolen all the attention through several news developments, like PayPal, going into cryptocurrencies and publicly traded companies like Square and Microstrategy, announcing their Bitcoin mega purchases.
Note that the current 63% dominance level for Bitcoin may prove to be a short-term area of resistance for BTC as it consolidates in the coming months. This fact can be seen in the following screenshot of the Bitcoin dominance graph:
The Ethereum theory thriving after the Bitcoin correction was also postulated by the popular crypto personality, Ran Neuner, who shared his opinion via the following tweet.
First BTC runs and sucks the blood out of Alts. Then ETH follows, then its Alt time. Start placing your chips!
– Ran Neuner (@cryptomanran) October 28, 2020
“First, BTC is up and sucks the blood from the alts. Then comes ETH and then it’s time for alts. Start placing your chips! ”
However, Bitfinex Whale @ Joe007 was quick to throw cold water in theory, explaining that Bitcoin’s well-known patterns are not usually repeated in the crypto-verse. His response to Mr. Neuner’s prediction that Ethereum and alts will soon prosper can be found below
It’s so good that each next Bitcoin price cycle always goes exactly like the one before it, down to minute details, right? I mean, how else could you make sure all these 2017 shitcoin FOMO bagholders finally become crypto-millionaires? https://t.co/G249E7roiu
– Joe007 signals · alerts · funds are scams, all of them (@ J0E007) October 28, 2020
“It feels so good that every next bitcoin price cycle always occurs exactly like the previous one, down to the smallest details, right? I mean, how else could you guarantee that all of these 2017 “shitcoin FOMO bagholders” (shitcoin holders) would finally become crypto millionaires?