Altcoin friends breathe a sigh of relief
The aftermath of “Black Monday” can only be felt subliminally, but the crypto investors again witnessed a certain chain reaction. Rising new coronavirus infections and slow economic growth caused uncertainty on Wall Street at the start of the week. As a result, the S&P 500 plummeted, which in turn had a negative impact on Bitcoin. Finally, the downtrend hit alternative assets with full force. Coins like Chainlink, Polkadot and Uniswap suffered double-digit losses and Altcoin friends were able to bid farewell to the vision of an “Altcoin Season 2020”.
Independent price breakouts are a rarity
The BTC Dominance Index represents the ratio between Bitcoin market share and Altcoin market share. In the previous week, the Altcoins were able to maintain 45% of the total market capitalization. But after the recent downward trend, investors are now focusing on the first mover. At the time of this article, the BTC Dominance Index is at a high value of 58.5 %. According to this, approximately USD 197 billion of the total market cap (approx. USD 337 billion) is in BTC investments. But how could Bitcoin cope with Monday’s dump?
Bitcoin bulls take over
A rising S&P 500 benefits the leading crypto currency on Thursday. This will allow the bulls to break through resistance at $10,600 and secure important support lines. Currently, the BTC price is at 10616 USD, which corresponds to a daily gain of 2.03 %.
Where are the next limits?
From a bullish perspective, the next resistances are at 10800 USD and 11000 USD. At this level, the bulls had to drop their sails the previous week. On the downside, the trend line at 10600 USD mutates into an important support line. As a result, Bitcoin can avert another showdown at the magic USD 10000 mark for the time being. The current uptrend is also giving many old coins a sigh of relief.
Chainlink catapults back to position 8 in the crypto charts with a price increase of 12.64 %. Thus the Oracle-Coin on Thursday recorded the largest pump in the Top 50. At the time of this article LINK is quoted at 9.27 USD and has a market cap of approx. 3.2 billion USD. Today’s upward trend is an important statement towards the competition. After reaching its all-time high (August 16th, USD 19.85), Chainlink went down step by step to the single-digit USD range.
What are the other Altcoins doing?
Ethereum is approaching the important 350 USD mark with a daily gain of 2.16% (current rate: 346.54 USD). After the ETH transaction fees have shot up in the past weeks, there is now hope that Ethereum will get the problem under control with the improvement proposal EIP 1559. Further down the line, Polkadot has jumped 3.92% to 6th position in the crypto charts. Uniswap on the other hand consolidates at a rate of USD 4.99. Most of the Altcoins can recover on Thursday from the strains of the previous days and make minor corrections. However, this is only possible because the BTC price is rising. The Altcoins still lack the capital strength for independent price outbreaks.