Bitcoin Stabilizes as These Two Altcoins Begin Facing Some Downside
Bitcoin has once again found itself caught within a bout of sideways trading around $9,100, with its recent break above the heavy resistance at $8,900 not being enough to catalyze another significant uptrend.
Altcoins have since recovered from their lows but remain at the precipice of another violent drop. Many altcoins have exploded in the New Year.
However, the altcoin market is forming the most dangerous pattern in the crypto space – and one that in the past has caused the market to collapse to new lows.
The market for alternative cryptocurrencies is on life support this weekend after crashing to six-month lows on Thursday, the casualty of a sudden correction in the price of bitcoin (BTC). Altcoins have since recovered from their lows but remain at the precipice of another violent…
On weekly timeframes, a massive, two-year-long descending triangle is clearly visible. Descending triangles can be bullish, but favor a break to the downside.
"It would have devastating implications for the altcoin space and greater crypto market"
The above chart weighs altcoins against Bitcoin, this would suggest that most of the lost capital from altcoins would pour directly into the leading cryptocurrency by market cap.
In the chart below, each triangle resulted in a dangerous drop of the crypto to new lows, providing an example of what to expect for a drop in altcoins if the pattern plays out.
Satoshi Flipper, a prominent cryptocurrency analyst on Twitter, explained that he believes the fate of these two altcoins rests somewhat in the hands of Bitcoin, as a breakdown here could have dire effects on their prices.
