Alternative cryptocurrencies felt today’s pressure as Bitcoin finally poked its head. The major cryptocurrency is on the rise today, and as it’s almost always the case, this took its toll on altcoins.
Bitcoin managed to regain almost 1.5% of its market dominance over the past 24 hours alone, leaving other cryptocurrencies in despair.
Altcoins Down Double-Digits
One of the most precise metric to keep an eye on to determine the current state of the market is Bitcoin’s dominance. It measures BTC’s share relative to the entire market.
In other words, when BTC’s dominance is going down, altcoins are breaking new grounds and vice versa.
Over the past 24 hours alone, Bitcoin managed to gain 1.5% of the entire market’s capitalization. This is largely because the cryptocurrency is up more than 4% over the same period.
Consequently, altcoins took a beating.
As seen in the image above, all the major cryptocurrencies are trading in the red against Bitcoin, with some of them marking double-digit declines. Cardano (ADA) is down 10%, Tezos (XTZ) is down 12%, while LINK is down upwards of 11%.
Broader Market Picture Confirms It
Looking at smaller-cap altcoins, the situation gets even worse. Ampleforth (AMPL) is down about 23% against BTC in the past 24 hours. Swipe is right there with it, while other DeFi projects such as Compound, Aave, Bancor, and Loopring, are down between 10% and 15%.
In any case, all of this was somewhat expected. It’s almost always the case when Bitcoin starts trending upwards, altcoins tend to suffer.
From a technical perspective, altcoins might hope to continue their gains once BTC slows down. From above, the next major resistance for the primary cryptocurrency is $10,500.
After that, there’s another challenge at $10,800 and $11,000. Depending on how Bitcoin behaves in the following days, altcoins might get the chance to rebound, or, of course, they can drop further below.