Crypto Analyst: Altcoin Apocalypse Caused Bitcoin Bear Market

Tony "The Bull" Severino

1 year ago

2 mins read

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Bitcoin was the first cryptocurrency to ever be created, and any crypto assets created after it are referred to as altcoins. These altcoins promise to improve upon Bitcoin in a number of ways – from faster transaction speeds to a larger supply and other attributes – and to bring investors gains similar to that of early Bitcoin investors.

But not only has Bitcoin outperformed most altcoins in 2019 and historically, but altcoins may also be responsible for the asset’s bear market, and the reason why crypto winter may be returning once again.

Altcoins Responsible for 2018 Bitcoin Bear Market

2017 was the year that put crypto on the map and brought the emerging technology and budding asset class into the mainstream limelight. During that year, there was an explosion of ICOs and dozens of new altcoins were popping up by the day. Bitcoin went parabolic and set an all-time high of $20,000.

Shortly after that, altcoins began to skyrocket and set their all-time highs in the days following Bitcoin, then the entire market began to fall. At that peak, BTC dominance – a metric used to weight the leading crypto asset against the rest of the market – was at its lowest point ever. Since then, BTC dominance has only grown.

One of the most prominent and respected crypto analysts in the space, 100TrillionUSD, says that this rise and fall in altcoins, was responsible for Bitcoin’s bear market in 2018 and not CME futures the crypto community likes to point fingers at.

Some people blame CME or Bakkt futures for #bitcoin's bear market.

IMO the rise and fall of altcoins is a more likely driver of 2017-2019 btc prices. Btc dominance fell from 98% to 40% … and is now back at 70% (and counting). Bitcoin up 8x since the start of alt experiment 🚀 pic.twitter.com/dC4ZCMuXzc

— PlanB (@100trillionUSD) September 30, 2019

The analyst says that since the “alt experiment” Bitcoin’s value has grown 8x in value, while Bitcoin dominance rose from 40% to 70% “and counting.”

Alt Apocalypse Also May Have Caused Most Recent Crypto Crash

If altcoins were responsible for the 2018 bear market, could they also be responsible for Bitcoin’s recent collapse? Given the negativity surrounding altcoins and crypto-assets like XRP setting new bear market lows, it is quite possible.

In fact, with sentiment surrounding altcoins being so low, and assets setting fresh yearly lows, it’s possible that the bear market never ended for altcoins like it did with Bitcoin, and the sell pressure across the industry and market in altcoins has spilled over into Bitcoin markets, causing the price to break down from the multi-month triangle formation it was trading within.

Ahead of the crash, which saw as much as 20% of Bitcoin’s value wiped out in 48 hours, altcoins began to rally, but the rally was short-lived and a rejection in Etheruem and XRP may have been the straw that broke the camel’s back.

Now, not only could altcoins be back in a bear market – or never left it in the first place – Bitcoin’s bull run may be in jeopardy and the current downtrend could drag the leading crypto asset by market cap back into a bear market.

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.