Most altcoins underperform as the bearish sentiment enhances and the analysts expect price bounces to remain in the short-term as we can see more today in our latest altcoin news.
BTC declined from a high of $30,658 during the NEw York Trading day as buyers remained on the sidelines. The cryptocurrency increased by 3% in the past week but struggled to outperform the majority of the coins. The Internet Computer token pared the gains and declined by 10% over the last day compared to the BTC’s flat performance in the same period. AVAX and SOL were down by 4% while DOT increased by 4%. The sentiment among crypto traders remains bearish and it can be evidenced by the downtick in the BTC Fear and Greed Index in the past few days. The index moved deeper into fear territory similar to what happened in January which preceded the upswing in the BTC price.
The technical indicators suggest limited upside for BTC at the 50-day moving average right now at $34,177. In the traditional markets, the S&P500 and NASDAQ Dropped on Friday as the 10-year treasury yield ticked higher and Gold was also lower which is down by 5% in the past three months compared to the 25% loss in BTC and a 4% drop in the S&P500 in the same timeframe.
Some analysts expect the crypto prices to stabilize in the short term which often happens after periods of price drops. QCP Capital is a Singapore-based trading company noted:
“For BTC and ETH, the current drawdown is now identical to the 2020 [COVID-19] drawdown. It is possible that we see a short-term bounce from these oversold levels.”
In 2017, it took about a year for BTC and ETH to see an upside limit until a bottom in price occurred. So far, some traders were reducing their exposure to risk and during the down markets, most altcoins underperform more than Bitcoin because of the greater risk profile. Bitcoin’s market cap rises relative to the total market cap in the bear markets. The charts show a breakout in the BTC dominance ratio similar to what happened back in 2018 which means a reversal of the risk-on environment in the past two years is underway and an increase towards 50% could offer some relief to the altcoins.
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