The ongoing Bitcoin rally brought investor interest back to altcoins in a big way, but as soon as the top-ranked cryptocurrency made it above $19,000, it has been nothing but carnage for Ethereum and the rest of the altcoin space.
Here’s why these assets faced carnage as soon as Bitcoin hit $19,500, and why it might signal a short-term top is near the crypto market.
Ethereum And Other Top Altcoins Suffer Carnage As BTC Nears ATH
Today could be the day when Bitcoin breaks its all-time high, and just about anyone in the crypto spaces knows it.
And that’s the primary reason in a nutshell that altcoins like Ethereum, XRP, and dozens more suffered a strong pullback once the most dominant cryptocurrency touched $19,500.
Related Reading | Bitcoin And Dollar Dominance: Five Factors Behind The Current Altcoin Season
At just a couple hundred dollars away depending on the exchange, Bitcoin price is now the closest its ever been to its former all-time high, and each attempt from bulls gets closer and closer.
With a new record so close crypto bulls are so confident and salivating at the milestone, that they’re dumping their altcoins – now in profit – back into BTC for what they believe to be the eventual push higher.
ETHBTC and altcoins slide as Bitcoin nears all-time high against the dollar | Source: BTCUSD on TradingView.com
Bitcoin Ended Alt Season As It Passed $19,000, Peak Is Possible
The divergence is clear. Bitcoin passed $17,700, causing altcoins to soar. But as soon as $19,000 was cleared, things have turned for altcoins as evident by the ETHBTC trading pair. Ethereum has tanked compared to Bitcoin’s ongoing bullishness.
The boom in altcoins is one of three factors CNBC’s Brian Kelly points to as a near-term top.
Related Reading | Here’s What Will Happen To Altcoins Once Bitcoin Breaks $20,000
But when Bitcoin does take out its all-time high, fireworks in altcoins typically happen, so downside in the alternative crypto assets is likely limited as well.
Featured image from Deposit Photos, Charts from TradingView.com
by Tony Spilotro on November 25, 2020 at 09:40PM
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