After the strong short-term rally that was previously reported in our altcoin news, the overall valuation of the crypto market reached $130 billion from the previous $141 billion.
Analysts believe that Bitcoin being unable to break out of the $4,200 mark is the reason why most of the crypto assets retraced. DonAlt believes that the cryptocurrencies are now in their last phase of retracement:
“All the bearish altcoins setups we’ve been discussing on stream for the last week are finally starting to play out. One more leg down should finish their retracements and make them attractive again. Staying hands off due to their weakness paid off. Patience is key.’’
He also stated that the investors could be probably extremely excited about breaking the resistance level which led the market to retrace:
‘’I’d argue the main reason why this happened was due to the entire crypto sphere getting overly excited into technical (Weekly & daily) resistance combined with the fact that there’ll probably be a lot of ‘sell the news’ coming the closer we get to the ETH fork.’’
Despite the decline in the price of Bitcoin, the fundamental factors still remain strong. The drop may have surprised investors because the number one cryptocurrency was struggling to overcome the resistance level for months. Bitcoin was close to going past the $4,200 resistance level which meant a possibility for the asset to breach the $5,000 price range.
Smaller assets tend to go under an intensified price movement when Bitcoin surges but they also tend to retrace by large margins when BTC drops.
Most of the tokens recorded losses from 10 to 25 percent against the US dollar as BTC dropped by more than 9 percent.
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