The crypto market is highly volatile due to its unique issues such as the FUD around some centralized exchanges and the uncertainties in the macro economic outlook because of the global risks of the trade wars.
When all things are put together, the investors agree on a specific action: Sell the highest risky assets in the portfolio. Under normal conditions, the markets' liquidity shares would be going lower as the risk decreases until a blow - off - top point that the whales distribute the assets they hold before starting a bearish cycle.
Contrary to the conditions we are familiar with, we are watching a perfect blood bath in altcoins in every 1% drop in the price of Bitcoin.
The correlation between alts and Bitcoin is no surprise but it is only a downward way of correlation that the other coins follow.
Bitcoin still follows a long - term uptrend in which the resistance might be up to $200K whereas the bottom can be around $80K in the channel.
It is obvious that Bitcoin is heading a perfectly bullish channel with some market corrections aside from a period of time to accumulate some more liquidity. However, neither the total market capitulization nor the performance of idle altcoims can be correlated with Bitcoin in the trend that we are swinging this year.
Two things are self - evident in the market capitalization chart that exclude Bitcoin and Ethereum
1 - The prices will be under pressure and wait for a time when they can serve for a dedicated purpose (to save global markets and diminish the negative impacts of a black swan condition)
2 - The accumulation is visible in the first look. Generally, such accumulations occur at the all time low periods before a massive bull - run.
This is what I meant in the second item above 👆
The market cycle for crypto cannot be over without taking the money of altcoin investors. Yes, we all are waiting for newcomers to sell off the coins we hold but there will be a lot more liquidity when newbies rush into crypto.
What do you think about the box the altcoins are in with high volume?
Share your thoughts below 👇
Hive On ✌️
Posted Using INLEO