Throughout the course of the crypto market’s firm 2020 uptrend, Bitcoin’s steady climb has allowed most major altcoins to post decent gains, although none have come close to competing with those seen by Chainlink and Tezos.
These two cryptocurrencies have been able to set fresh all-time highs over the past couple of weeks, and although their uptrends have slowed down as of late, they still remain overwhelmingly bullish.
One analyst, however, is noting that these two cryptocurrencies could be subjected to brutal losses if Bitcoin sees a breakdown from its current price levels.
Bitcoin Stabilizes as These Two Altcoins Begin Facing Some Downside
Bitcoin has once again found itself caught within a bout of sideways trading around $9,100, with its recent break above the heavy resistance at $8,900 not being enough to catalyze another significant uptrend.
This consolidation phase has led the altcoin market to see some mixed price action, with Ethereum and XRP both climbing today, while some smaller altcoins like Chainlink and Tezos have both shed roughly 3% over the past 24-hours.
While looking at these two altcoins in particular, their market structures are still highly bullish despite them seeing some slight downside over the past few days.
Tezos is currently trading at $3.11, which marks a notable decline from its recently established all-time highs of $3.80, but a massive climb from its 2020 lows of $1.25.
This intense rally has only been matched by that seen by Chainlink over the past couple of months, which rallied from lows of $1.70 in January to fresh all-time highs of $4.80 just a few days ago. In the time since it has declined slightly from these highs to its current price of $4.60.
Analyst: Chainlink and Tezos Could Be Hit Hard by a BTC Selloff
Satoshi Flipper, a prominent cryptocurrency analyst on Twitter, explained that he believes the fate of these two altcoins rests somewhat in the hands of Bitcoin, as a breakdown here could have dire effects on their prices.
“IF BTC breaks down below $9k, I’m afraid LINK/USDT & XTZ/USDT will get [hit] a bit harder than some of the other majors since they’ve had a nice run up lately. Not trying to scare anyone, just want you guys to be prepared and protected of anything,” he explained.
Not trying to scare anyone, just want you guys to be prepared and protected of anything.
This does seem to be plausible, as any sort of intense market-wide downturn led by a Bitcoin selloff may lead Chainlink and Tezos investors to take some profits off the table, thus perpetuating a selloff.
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