Why Bitcoin Price And Volume Rising Together Is Bad News For Ethereum, Alt Season?
Bitcoin is a volume sucker working to grab all from the cryptocurrency market since the rally continues ahead. It is a reason leading the alternative market for cryptocurrency or alt-coin to face a pullback. As a result, the alt-coin market is experiencing a low demand from the buyers too. In the future, traders hold a belief that there is no return point for alt-season.
When is the time for alt-coins to recover?
As per the historical records, Bitcoin experienced a significant uptrend in the beginning in the crypto market. After that, it was followed by the alt-coins. Among the traders, such a pattern is foreseen in the current cycle of price. The alt-coins market may stand in the recovery phase in 2021. Until the stabilization and rally completion of BTC, no trader sees an uptrend in the alt-coins market.
From 13 September, the Bitcoin index of dominance is high to 63.4% from 56%, with a 7.4% rise in just two months.
In the alt-coins market, a significant problem is the dynamic nature of the crypto scenario. With the high rise of Bitcoin, a fall occurs for alt-coins. It is because the capital cycle starts turning backward to bitcoin. If there is a drop in BTC prices, a tandem fall will happen with alt-coins. As a result, alt-coins might come to a precarious stage.
“Don Alt,” recognized as a pseudonymous trader, said that a broad pullback for the alt-coin market is coming if the ETH price doesn’t cope-up with the Bitcoin price.
A CryptoCapo recognized trader interfered in the matter. He said that the alt-coins technical structure doesn’t seem to be a compelling one. He further added:
“Honestly, Alts exist that don’t sound positive, even the decent Alts, and good-looking Alts too. At present, one can’t state any alt-coin as a good one. So, the wise selection is important.”
Bitcoin rally key is cooling down:
Since the BTC price will surge quickly and Ether’s slow time is behind, it is unlikely to see an alt-season within the near time. As a strong indicator of alt-season, the ongoing rally consolidation with the ETH price breakout can signal. Seeing the broke-out of BTC/USD involving $13,000, alt-coin and Ether markets can be in the uptrends.
The alt-coin market capital seems to transfer into Bitcoin. In October, a lot of volumes are captured by the decentralized form of exchanges. As a result, it indicates that DeFI tokens demand is going down because of Bitcoin momentum prevailing in the market.