As Bitcoin price approached $14,000 just mere hours after breaking through $13,000, a violent flash crash occurred that knocked the price of the leading crypto asset by market cap down by more than $2,000 in seconds, and with it took out many top crypto exchanges.
While Bitcoin continues to climb, altcoins are experiencing a major capitulation event, reaching lows not seen in years relative to their BTC trading pairs. Now, as even USD values of altcoins start dropping, many are calling for doom for altcoins. However, others believe that Bitcoin profits have started to flow into altcoins at these levels, and soon, they’ll catch up to to BTC in the coming days and finally kick off the alt season analysts have been calling for since the start of 2019.
Bitcoin Blasts Off, But The Bull Run is Just Beginning
In the face of growing fears of an impending economic collapse and increase pressure in the face of the ongoing trade war between the US and China, both gold and Bitcoin have skyrocketed in recent days, proving their value as an economic hedge.
Related Reading | Crypto Pundit Peter Schiff Says Gold Is In Early Bull Market, But Bitcoin Is a Sucker’s Rally
While some naysayers may be calling Bitcoin’s rise a sucker’s rally, most analysts are confident another bull run is about to begin. A chart shared by crypto trader Nik Patel, best-selling author of An Altcoin Trader’s Handbook, shows that once the 360-week and 200-week moving averages crossed, which is days away from occurring, Bitcoin went on nearly a two-year-long bull run that topped out at its all-time high of $20,000. The rally took the world by storm, and caused a massive bubble to grow and eventually pop.
Something something Mark Twain about history$BTCUSD pic.twitter.com/8pmlMVd1ZN
— Nik Patel (@cointradernik) June 27, 2019
The chart and altcoin-focused analyst suggest that Bitcoin is about to embark on its next bull run and uptrend, once the two moving averages cross. The chart also clearly shows the 260-week MA acting as support throughout the entire uptrend, until the parabolic advance eventually broke and the price corrected deeply.
Altcoins Capitulate Relative to BTC, and Now USD, Will We Ever See Alt Season Again?
Bitcoin’s deep price correction eventually ended, which prompted the current rally. However, once Bitcoin price really took off back in April, altcoins have plummeted to new lows relative to their BTC trading pairs, and are currently experiencing a major capitulation event, as crypto traders dump their bags in exchange for Bitcoin gains.
Scrolling down CoinMarketCap viewing the price change in BTC value shows an absolute see of red, and it’s been that way throughout most of Bitcoin’s climb. The leading crypto by market cap is sucking up all of the value out of the market, at the expense of just about all altcoins.
And there it is.BTC retraces and alts take yet another bigger shit.This is the optimum, now we're finally getting the USD pair capitulation too.
— DonAlt (@CryptoDonAlt) June 27, 2019
Capitulation really began to set in when Binance announced they’d be blocking US investors from their exchange where many exotic altcoins are traded – signaling that regulation is near. Altcoins don’t have as much regulatory support as Bitcoin, and it’s causing investors to see that Bitcoin is a safer bet.
Related Reading | Crypto Analyst: Don’t Expect Altcoin Season Until New Bitcoin All-Time High
Still, many saw yesterdays powerful crash in Bitcoin coinciding with new lows as a signal to buy altcoins. Some believe that the sold Bitcoin that caused the flash crash was moved into altcoins, and a massive rally is expected. Others say that Bitcoin simply crashed harder in USD value relative to alts, making it appear as though a bounce had occurred.
Wow look at that $BTC movement
Money going straight back into alts rather than leaving the market is a good sign…
— Posty (@Crypt_Malone) June 26, 2019
Bitcoin dominance broke above 60% in recent days, and is targeting higher. 63.5% dominance may be an important area where altcoins bounce, according to analysts. If they do bounce, alts like Ethereum, Ripple, and Litecoin are expected to skyrocket and start a new alt season, while others, like the Binance IEOs that were once pitched as the next golden goose, are likely to be seen as too risky in the face of regulatory uncertainty and bleeding altcoin prices.
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