Bitcoin’s 2020 rally has provided some much-needed upwards momentum for the aggregated crypto markets, with many altcoins putting significant distance between their recent lows and their current prices.
Interestingly, unlike previous rallies, Bitcoin and altcoins have been rising in tandem, suggesting that fresh capital is entering the markets rather than investors siphoning funding away from Bitcoin and towards altcoins, or vice versa.
This may change, however, as one analyst is now noting that Bitcoin’s dominance just broke beneath a critical support line, suggesting that altcoins are about to see some intense upwards momentum.
Crypto Market Continues Rising as Altcoins Closely Track Bitcoin
Currently, the aggregated crypto market is trading up significantly from its daily lows, which has come about after Bitcoin rallied past $10,000.
This upwards momentum has made the overall crypto market’s structure appear to be highly bullish, with many analysts noting that BTC and other altcoins could be on the cusp of going parabolic.
In the near-term, it is important that Bitcoin closes its weekly candle above $10,000, as a close below this level could rattle investors and lead to a sharp market-wide selloff.
One factor that is important to keep in mind is that altcoins may start outperforming Bitcoin in the near-term, which could be driven by Bitcoin’s market dominance recently dropping below a key support level.
HornHairs, a prominent crypto analyst on Twitter, spoke about this in a recent tweet, telling his followers that its dominance could drop by another 5% before finding support, suggesting that altcoins could significantly outperform BTC in the near-term.
“BTC DOMINANCE: One of the cleanest trendlines I’ve seen has officially broken down, along with horizontal support, on the BTC dominance chart. A good -5% left before it finds previous support, meaning select alts should have at least a few more moves to the upside left,” he noted.
$BTC DOMINANCE
One of the cleanest trendlines I've seen has officially broken down, along with horizontal support, on the BTC dominance chart.
A good -5% left before it finds previous support, meaning select alts should have at least a few more moves to the upside left. pic.twitter.com/KZTykZfPac
— HornHairs 🌊 (@CryptoHornHairs) February 9, 2020
Could Ethereum’s Price Action Further Support This Notion?
HornHairs also noted that Ethereum’s recent price action seems to further support the notion that altcoins will see some intense upwards momentum against BTC.
“Another way to gauge ALT/BTC health is the ETH/BTC chart. Currently we see price attempting an S/R flip on the daily. Looks great so far as long as it can hold 0.02175,” he explained.
Another way to gauge ALT/BTC health is the $ETH/BTC chart.
Currently we see price attempting an S/R flip on the daily.
Looks great so far as long as it can hold 0.02175. pic.twitter.com/ybnh3sXOjK
— HornHairs 🌊 (@CryptoHornHairs) February 9, 2020
In the near-term, Bitcoin will likely continue to offer guidance to the crypto market, but it is highly possible that it will soon enter a bout of sideways trading that allows altcoins to incur significant upwards momentum.
Featured image from Shutterstock.
