Bitcoin remains under moderate pressure on Thursday, trading near $46.3K, down 12.5% from Tuesday's peak. Meanwhile, the total capitalisation of the crypto market has surpassed $2.1 trillion this morning.

Overall, the trend of bitcoin's share of the crypto market remains down, except for a brief period when altcoins collapsed following the first cryptocurrency. Bitcoin's share of total capitalisation fell to 40.8%, the lowest since May when an altcoin sell-off temporarily reversed the trend.

A repeat of the same scenario is to be feared this time as well. The fall in bitcoin's share caused by its falling price rather than outpacing the rise in altcoins has repeatedly turned into a massive surrender by buyers.

We saw the most striking example of this pattern in late 2017, when BTC turned down in mid-December, its share dropping to less than a third in the following month. The trend then reversed, and altcoins found themselves under a prolonged sell-off. Many of the then-existing altcoins are still an impressive distance from the record levels of January 2018.

The most favourable environment for the crypto market is bitcoin rising at a slower pace than altcoins. A fall in the price of the market flagship risks a sharp sell-off in altcoins as early as September.

And in this case, the technical picture in BTCUSD is worth paying particular attention to. The price touched 43K during Tuesday's sell-off, where the 50-day and 200-day simple moving averages intersect, and the fight for these levels is far from over. If Bitcoin manages to stay above those levels by the end of the week, the chances of buyers coming in on the downside will increase considerably, which would pull the price up. In that case, the altcoin position could recover even faster, and there will be a more significant reason behind the current rise.

If BTCUSD falls below its key moving averages, it could trigger a new crypto-winter, repeating the situation from May 2018. Back then, BTC lost more than 60% in the next seven months after falling under the same averages and managed to return to those levels a year later. In our case, this could escalate into BTCUSD falling into the $22-28K area, rewriting last summer's lows.

Trade Responsibly. CFDs and Spread Betting are complex instruments and come with a high risk of losing money rapidly due to leverage. 77.37% of retail investor accounts lose money when trading CFDs and Spread Betting with this provider. The Analysts' opinions are for informational purposes only and should not be considered as a recommendation or trading advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Tezos Price Prediction: XTZ to provide bulls a generous exit before a 15% nosedive

Tezos Price Prediction: XTZ to provide bulls a generous exit before a 15% nosedive

Tezos Price is hovering above a stable support level after facing an intense rejection. While this foothold is likely to provide harbor, it will not be for long. Investors must prepare for a long squeeze as bears make an elaborate move.

More Tezos news

AVAX price exhaustion could lead to sizeable retracement, but for the better

AVAX price exhaustion could lead to sizeable retracement, but for the better

AVAX price is in a no man’s land and depending on how the altcoin reacts to a few barriers, investors can bet on its direction. But a minor retracement in the short-term seems likely given the current market conditions.

More Avalanche news

Why Terra’s LUNA is bound to face a technical punishment

Why Terra’s LUNA is bound to face a technical punishment

Terra (LUNA) price action is facing headwinds from both sides as a technical candlestick pattern is throwing a spanner in the works, together with that long-feared dollar strength that is re-emerging after several warnings from Fed.

More Terra news

Why Solana price action is going nowhere

Why Solana price action is going nowhere

Solana's (SOL) price, from a first glance at the sheet, looks bullish and set forth to continue its rally and winning streak. However, a closer look under the hood reveals that on a weekly chart, price action is going nowhere and could soon collapse once a tail risk gets inflated again.

More Solana news

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin price shows an interesting setup that could reveal its next move. On closer inspection,  its technicals support a bearish outlook for the leading crypto.  

Read full analysis

BTC

ETH

XRP