Crypto Analyst: Altcoin Annihilation Responsible for Bitcoin Breakdown

Tony "The Bull" Severino

5 years ago

3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

This week, the “altcoin annihilation” really ramped up, despite already causing such devastation to crypto investors. The selling pressure and negative sentiment were enough to also drag Bitcoin price down as well.

While altcoins are free-falling, one crypto analyst says that although altcoins are currently causing “turbulence” for Bitcoin, it will resume “moon mode” as soon as the alt selloff begins to cool down.

Altcoins May Drag Down Bitcoin, But They Won’t Stop the Bull Run

This week, EOS, Ethereum, and Litecoin massively dumping their USD values dragged Bitcoin price down under $10,000, shocking bullish crypto investors that assumed $10,000 would be unbreakable.

It’s long been said that the negativity and fear surrounding altcoins could be enough to cause Bitcoin to collapse, despite others being confident that Bitcoin has already embarked on a bull run, and that it’ll slowly grind up at support and eventually set new highs. The former is proving to be true, and Bitcoin price is struggling to reclaim $10,000.

Despite altcoins leaving Bitcoin on the ropes, one prominent and often-cited crypto analyst, Plan B – known for his stock-to-flow model that helps apply Bitcoin’s hard-coded scarcity to future price projections – says that the current “altcoin annihilation” is causing some “turbulence” on Bitcoin’s moon mission, and is just refueling its jets in order to resume its bull run once “skies are clear” and the altcoin selloff finally starts to stall.

https://twitter.com/100trillionusd/status/1167361450551259136?s=21

Previously, the analyst shared a chart that demonstrates how Bitcoin’s relative strength index shows similarities to the mid-2016 when Bitcoin’s highly-publicized bull run started to build a foundation.

The same is said to be happening now throughout the crypto market, with Bitcoin’s recent correction building support in which will act as the foundation for the next bull run.

Plan B’s stock-to-flow model is widely believed by highly respected financial industry figures. In the model, data suggests that Bitcoin price could reach $55,000 by May 2020 – when Bitcoin’s next halving occurs.

Each halving cuts the BTC block reward miners receive in half, throwing off the supply of Bitcoin and causing the price to rise. With crypto investors knowing this, the halving is expected to be front-run by investors buying up the digitally scarce Bitcoin in anticipation of its value rising significantly.

Bitcoin is the best-performing asset ever, easily beating the ROI of stock, gold, and much more. Altcoins, however, are still down significantly from their all-time highs and may never again achieve such values, even if Bitcoin were to reach $100,000 per BTC.

With the outlook so bleak for alts, the theory that Bitcoin might range for some time could be valid, as it may take a while for the “altcoin annihilation” and related “turbulence” to subside.

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.