The Bitcoin Plunge Might Be The Best Setting For Altcoin Season, Analyst Says
The crypto market crashed yesterday as Bitcoin and major altcoins marked severe double-digit losses. A popular crypto analysist in Tweeter thinks that a serious market crash can actually turn out to be a positive thing for altcoins. Bitcoin holders might see the bearish trend as the beginning of the next major altcoin season.
Altcoin Season on the Horizon?
Per the opinion of the popular crypto analyst DonAlt, in order for the next altcoin season to arrive, Bitcoin has to experience a harsh decline in its price.
I think the best way to get alt season at this point is a BTC drop that is coupled with an altcoin ratio drop.
That’d scare the shit out of holders, make them capitulate right into the last cycle low (For majors) and open the doors for an altcoin run.— DonAlt (@CryptoDonAlt) August 12, 2019
The original post was back in August but it’s applicable today with the most recent market crash. We have seen before that when Bitcoin goes through such a decline, altcoins are usually strongly correlated and they follow through. However, the severe crash of the largest cryptocurrency might actually scare holders, making them “capitulate right into the last cycle low (For majors) and open the doors for an altcoin run.” Thus, it could result in what altcoins need to turn around and head to a new altcoin season.
The analyst also added that the market always behaves in a way to put altcoin holders in maximum pain, before encouraging them to “capitulate away and then be born anew”.
Market Cycles and Year-To-Date Results
As per a famous graphic of the market cycle psychology, the aforementioned capitulation is a state of mind that follows panic and denial. Its position is at the end of the previous bull run after a huge decline in the prices.
With this most recent market crash, it’s easy for forget the massive bull run of 2019. Bitcoin’s price went from $3700 in January, reaching $14000 in June. Even when we take into consideration the declined price of $8500 now, it’s still up 129%.
Some of the altcoins have seen a substantial increase as well. Binance Coin went from $6.19 to $40 and it’s now at $15.5 or a year-to-date increase of 150%. Litecoin started at $30, climbed to $142 and it’s now at $55 (85% total yearly increase). The second-largest cryptocurrency, Ethereum, started the year at $133, reached $350 and finds itself at $169 as of now, which equals 27%.
It’s also worth noting that other altcoins, such as Ripple, are struggling with a negative percentage after the recent crash. XRP’s is 34% in the negative in 2019.
The post The Bitcoin Plunge Might Be The Best Setting For Altcoin Season, Analyst Says appeared first on CryptoPotato.
