Cryptocurrency markets are in a state of limbo as the world waits to see if Bitcoin has got the chops to bust through the $6k barrier, or if a pullback to the low 5000s is on the cards first. The weekend saw some volatility and heavy spiking, with a low of $5,510 Saturday followed by $5,845 Sunday, ending the week with a drop $200 to $5,560 before a slight rebound. Alts are not enjoying the focus being Bitcoin, continually shedding value and putting paid, temporarily at least, to the calls for alt season that have been coming from many quarters.
Bitcoin’s Corridor of Uncertainty
With BTC in a corridor of uncertainty, crypto Twitter was awash with those trying to search the tea leaves for any sign of the next move, resulting in some interesting rationales being put forward:
I don’t have a problem with the price reaching $6260 next week, and if I have to put my finger on a date, Tuesday-Wednesday doesn’t sound crazy at all. Waiting… $BTC 1W #Gann #Coinbase pic.twitter.com/kH5UMZOk3K
— Mitoshi Kaku 👨🏻🚀 (@CryptoSays) May 5, 2019
— Bitcoin 𝕵ack (@BTC_JackSparrow) May 5, 2019
Others however were a little more circumspect, and summed up the mood pretty well:
One side calling for nuke to 4ks, one side calling for 6400 then nuke, one side calling for 50k soon.
— ChimpZoo (@ThinkingBitmex) May 5, 2019
Alts Dwindle as Bitcoin Dominance Surges
Alts meanwhile continued their miserable run, with most suffering in Bitcoin’s shadow as all eyes are on the daddy of cryptocurrencies, at least for now. XRP in particular has endured a torrid 2019 compared to BTC, having spent almost every day since Christmas Eve 2018 dropping in comparative value.
Alts in general are losing dominance to Bitcoin, with the past month alone showing a rise in Bitcoin dominance from 50% to 56%. The last time Bitcoin dominance was this high was September 2018 which precipitated a mini alt rally, and the time before that was in the thick of the 2017/2018 bull run which saw 200%+ gains in alts after Bitcoin hit $20,000. It’s unlikely that we will see that kind of action this time round, but if the Bitcoin dominance continues the way it has been going, which is more likely than not, then getting into alts when it does finally cool off could prove to be a very profitable play. Where this cooling off will happen however is anyone’s guess, but if a major move doesn’t happen within 48-72 hours then we might start to see alts taking tentative steps towards recovery.
The safest play in this situation is to wait for one or two alts to pop off and pick up the likely next candidates. Don’t leave it too long though – Bitcoin doesn’t’ tend to hang around!