If Bitcoin (Bitcoin) Prices fell sharply.
Filbfilb, an independent market analyst and co-founder of Decentrader’s trading suite, believes. In a tweet published late on Friday, the anonymous entity stated that a 30% drop in the Bitcoin market could cause altcoins to fall twice.
When Bitcoin consolidated between USD 50,000 and USD 60,000 between March and May, altcoins exploded. Similarly, the recent adjustment of the Bitcoin market witnessed the fall of the flagship cryptocurrency from approximately $65,000 to as low as $28,000, which also caused the altcoin to collapse; however, when Bitcoin stayed in the range of $50,000 to $60,000 , They are still support levels.
Filbfilb pointed out that altcoins have been facing the so-called “catch-up risk”, implying that even a small downward change in the Bitcoin market could cause altcoins to fall twice. The announcement came as the price of Bitcoin plummeted to $30,173 after a downside correction of 15.58% so far this week.
“[Altcoins]Therefore, compared with Bitcoin, its downside risk is much greater [BTC/USD] Threat low,” Tweet Philbu. “If Bitcoin falls, and in the worst case, it loses another 30%, I expect [altcoins] The correction is made 2 times worse from here. “
“If Bitcoin falls and loses another 30% in the worst-case scenario, I expect alts to correct, which is 2 times worse than it is now.”
Bitcoin’s fall in May and June pushed its year-to-date performance to 5.71%. At the same time, although the top altcoins fell simultaneously, their year-to-date return performance was much better.
For example, ether (Ethereum) Is the second largest cryptocurrency, down by more than 60% from its peak of $4,384 in mid-April. Nevertheless, as of the time of publication, its year-to-date return was 141%. Similarly, even with a nearly 80% drop from the historical high of $0.76, Dogecoin’s YTD profit is still 4,112%.
Therefore, altcoins seem to provide their holders with better profit-taking opportunities than Bitcoin. Therefore, investors can offset their losses in the Bitcoin market by simply selling their altcoin profits in exchange for fiat currency and/or transferring funds back to BTC.
Bitcoin and $20,000
Recently, despite repeated attempts, Bitcoin has been able to avoid further falling below $30,000.
Many analysts, including Mercuryo founder Alexander Vasiliev, see Bitcoin’s bullish resilience as a signal that it will eventually break above $40,000 and rise to a previous high near $64,000 in the medium to long term.
However, after the recent bearish correction of cryptocurrencies, some analysts who were bullish on Bitcoin changed their biases.
For example, Scott Minerd, chief investment officer of Guggenheim Partners, a multi-billion dollar investment firm, Tell CNBC On Friday, he expects Bitcoin to fall to $15,000.
In February, just as Bitcoin broke through the $30,000 resistance, Minerd predicted that its price would reach $600,000.
Clem Chambers, the chief executive of financial analysis website ADVFN.com, is also bearish on Bitcoin and pointed out that due to surrender sentiment, Bitcoin may fall back to $20,000.he Wrote in his SeekingAlpha article:
“The next round of decline seems to be here, and this will be the last major decline, leading to a repeat of the crypto winter we experienced before.”
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