Continued Bitcoin Correction Could Cause Lead to Altcoin Market Double Bottom

Tony "The Bull" Severino

Last Updated: August 10, 2019 2:00 am

3 mins read

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The start of 2019 saw Bitcoin, altcoins, and the total crypto market cap all reaching their “bottom,” and have all since risen USD in value by 100% or more. But at the start of April, Bitcoin continued to rally while altcoins have only bled out and capitulated, falling most sharply in their ratios against Bitcoin.

Bitcoin has now begun to correct, yet altcoins haven’t regained any lost ground and instead have only fallen further. One crypto analyst believes that sustained correction in Bitcoin could cause the altcoin market to double-bottom, suggesting altcoins will retest previous lows not seen since the start of the year.

Altcoin Double-Bottom Ahead if Bitcoin Correction Continues

Ever since Bitcoin reached $13,800 it has been struggling to regain the bullish momentum that caused a parabolic rally out of bear market lows. The leading crypto asset by market cap has been on a strong climb since early April, that’s devoured all of the capital in the crypto market, causing crypto investors to dump their alt holdings into Bitcoin in fear of missing out on the bull run ahead.

But since it started correcting, altcoins have failed to recapture any lost value, and are only dropping further. Crypto analyst Dave the Wave, in his latest analysis, has shared a chart comparing Bitcoin price action alongside the altcoin market cap.

If BTC continued to correct, alts could easily double bottom. pic.twitter.com/fmAiYj4VAW

— dave the wave🌊🌓 (@davthewave) August 9, 2019

The two price lines show a clear divergence in momentum, with the altcoin market cap beginning to tilt downward, while Bitcoin points upward and is starting to show some indecision.

If momentum and sell pressure continues to push altcoins to the downside, the analyst says that “alts could easily double bottom.”

Alt Gains Now At Parity With BTC, Total Market Cap to Correct

Making matters worse, the total crypto market cap which includes both Bitcoin and altcoins, appears to be forming a head and shoulders top – a bearish reversal pattern which if confirmed would also confirm the analyst’s theory of a double bottom.

Considering the sentiment around altcoins versus Bitcoin, the alternative digital assets would be the likeliest candidate to suffer the most additional correction. This would also fall in line with other analyst theories, such as the long-term altcoin market cap “channel” showing another 50% drop ahead, before any chance of an “alt season” occurring.

After a massive run up, possible H&S forming on Total Market Cap…. pic.twitter.com/xQ9hNEPy4I

— dave the wave🌊🌓 (@davthewave) August 8, 2019

Many altcoins are still down 90% or more from their previous all-time highs, and may never reach another all-time high even if Bitcoin reaches $100,000. Dave the Wave also shared another chart, depicting how the crypto hype bubble finally inflating has brought Bitcoin and altcoins back to “parity” in terms of returns, with each market reaching over 1000x in gains.

Since April 2017 [when the spike in Crypto really got going], BTC has come back to 'parity' with the alts. BTC and the alt market cap are both showing gains of just over 1000%. pic.twitter.com/EjKspBo2V6

— dave the wave🌊🌓 (@davthewave) August 9, 2019

When considering the fundamental value of Bitcoin, versus a market of crypto assets that have little-to-no use case, are 90% below their all-time highs, and the sentiment is in the gutter, further drop from “parity” with Bitcoin doesn’t seem surprising.

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.

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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.