The total market capitalization of altcoins slips below $100 billion on 19th February after a flash drop in Bitcoin.
As reported yesterday on CoinGape, as the systematic risk of altcoins is greater than Bitcoin, so is the risk-reward ratio. Yesterday, the drop in the market capitalization of altcoins was about 2% deeper than BTC.
XRP and Litecoin on the Edge Again
Veteran chart analyst, Peter Brandt warns of the confirmation of a head and shoulders pattern in XRP as well. The pattern has been forming on Bitcoin as well, expressing similar sentiments across the across.
It will be interesting to see if this H&S top plays out. If so, the target would be .2071.
This Tweet poses a possibility. This is not a prediction. pic.twitter.com/IJiMR2AEnV
— Peter Brandt (@PeterLBrandt) February 20, 2020
Moreover, a similar pattern is playing out on Litecoin [LTC] as well. While the rise and fall in LTC has been greater, it has lately been in sync with Bitcoin. The equivalent support target for LTC is at $67 and $52, respectively.
Will Ethereum Lead?
Ethereum, which has primarily led the altcoins and to some extend Bitcoin as well. It’s price is now looking for support from range support above $250 and the 10-EMA (Expoential Moving Average).
However, CryptoFibonacci, a crypto trader notes in his update and the two long red candles on 14th and other one yesterday, might be pointing towards a bigger sell-offs.
The price action (PA) towards the end of the week will be instrumental in establishing renewed sentiments in the market – bullish or bearish.
Currently, as Bitcoin and altcoins have failed to break above recent highs followed by a massive pullback, the buying momentum is expected to reduce. The swing highs at the moment are also forming the resistance levels for the bulls.
Do you crypto markets will continue its drop or buyers will step back in again? Please share your views with us.