Crypto Chaos: Altcoin Capitulation Continues, But Bitcoin Bull Run is Just Beginning

Tony "The Bull" Severino

6 years ago

4 mins read

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As Bitcoin price approached $14,000 just mere hours after breaking through $13,000, a violent flash crash occurred that knocked the price of the leading crypto asset by market cap down by more than $2,000 in seconds, and with it took out many top crypto exchanges.

While Bitcoin continues to climb, altcoins are experiencing a major capitulation event, reaching lows not seen in years relative to their BTC trading pairs. Now, as even USD values of altcoins start dropping, many are calling for doom for altcoins. However, others believe that Bitcoin profits have started to flow into altcoins at these levels, and soon, they’ll catch up to to BTC in the coming days and finally kick off the alt season analysts have been calling for since the start of 2019.

Bitcoin Blasts Off, But The Bull Run is Just Beginning

In the face of growing fears of an impending economic collapse and increase pressure in the face of the ongoing trade war between the US and China, both gold and Bitcoin have skyrocketed in recent days, proving their value as an economic hedge.

While some naysayers may be calling Bitcoin’s rise a sucker’s rally, most analysts are confident another bull run is about to begin. A chart shared by crypto trader Nik Patel, best-selling author of An Altcoin Trader’s Handbook, shows that once the 360-week and 200-week moving averages crossed, which is days away from occurring, Bitcoin went on nearly a two-year-long bull run that topped out at its all-time high of $20,000. The rally took the world by storm, and caused a massive bubble to grow and eventually pop.

Something something Mark Twain about history$BTCUSD pic.twitter.com/8pmlMVd1ZN

— Nik (@cointradernik) June 27, 2019

The chart and altcoin-focused analyst suggest that Bitcoin is about to embark on its next bull run and uptrend, once the two moving averages cross. The chart also clearly shows the 260-week MA acting as support throughout the entire uptrend, until the parabolic advance eventually broke and the price corrected deeply.

Altcoins Capitulate Relative to BTC, and Now USD, Will We Ever See Alt Season Again?

Bitcoin’s deep price correction eventually ended, which prompted the current rally. However, once Bitcoin price really took off back in April, altcoins have plummeted to new lows relative to their BTC trading pairs, and are currently experiencing a major capitulation event, as crypto traders dump their bags in exchange for Bitcoin gains.

Scrolling down CoinMarketCap viewing the price change in BTC value shows an absolute see of red, and it’s been that way throughout most of Bitcoin’s climb. The leading crypto by market cap is sucking up all of the value out of the market, at the expense of just about all altcoins.

🎯
And there it is.
BTC retraces and alts take yet another bigger shit.
This is the optimum, now we're finally getting the USD pair capitulation too.

— DonAlt (@CryptoDonAlt) June 27, 2019

Capitulation really began to set in when Binance announced they’d be blocking US investors from their exchange where many exotic altcoins are traded – signaling that regulation is near. Altcoins don’t have as much regulatory support as Bitcoin, and it’s causing investors to see that Bitcoin is a safer bet.

Still, many saw yesterdays powerful crash in Bitcoin coinciding with new lows as a signal to buy altcoins. Some believe that the sold Bitcoin that caused the flash crash was moved into altcoins, and a massive rally is expected. Others say that Bitcoin simply crashed harder in USD value relative to alts, making it appear as though a bounce had occurred.

Wow look at that $BTC movement

Money going straight back into alts rather than leaving the market is a good sign…

— Posty (@PostyXBT) June 26, 2019

Bitcoin dominance broke above 60% in recent days, and is targeting higher. 63.5% dominance may be an important area where altcoins bounce, according to analysts. If they do bounce, alts like Ethereum, Ripple, and Litecoin are expected to skyrocket and start a new alt season, while others, like the Binance IEOs that were once pitched as the next golden goose, are likely to be seen as too risky in the face of regulatory uncertainty and bleeding altcoin prices.

Featured image from Shutterstock

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.