What Analysts Think About Altcoins Making a Comeback in 2020
At the moment, the price of BTC seems to be trading within the $7000 range. Further, the performance of altcoins has been quite bearish in the previous few weeks. Some of the altcoins are moving towards the support levels attained in November 2018 prior to a reversal.
As for the performance of XRP, its price is under $0.2 which is a two-year low. The price is 92 percent down from its high in December 2017. Meanwhile, ETH, LTC & BCH are close to last years’ November levels.
According to Josh Rager, a cryptocurrency analyst via YouTube, he notes that altcoins have low volatility and is the same with BTC. He continued that altcoins await the moves of BTC to decide where to go. The prices of altcoins may benefit from the fall of BTC price to $6k, he said.
BitMEX predicted that Bitcoin’s dominance may decline in the coming year. If such happens, it means that altcoins’ value would increase.
Willy Woo revealed that at the moment, the ratio of the market cap of altcoin to BTC is at the threshold level. He continued that there may be a fresh 60 percent decline in the ratio if the trend line is broken. If such occurs, he maintained that the altcoins would eventually be purged of the 2017 bubble run. He observed that a break below the line would come from the correlation with the bull trend of Bitcoin.
However, several altcoins are now visiting price levels attained before the exponential run in December 2017. In 2019, bullish sentiments remained in place. However, things changed prior to December where a huge run occurred. Nevertheless, the dominance of BTC was over 80 percent before the time altcoins experienced an upsurge in 2017.
Besides, some ‘Bitcoin Maximalists’ think that the dominance of BTC would surge beyond 80 percent again as the ‘shitcoins’ keeps dying.
In conclusion, at the moment, stablecoins which is basically FIAT are categorized as altcoins. Therefore, the real altcoins’ dominance in the cryptocurrency markets could be lower.
Featured image courtesy of Shutterstock. Source: Cryptopress.