The aggregated cryptocurrency market has been struggling to spark a macro uptrend due to Bitcoin’s inability to break above $10,000
This has led it to form some heavy resistance just above its current market cap – with this level potentially being insurmountable in the near-term
Analysts are also pointing to altcoins severe underperformance of Bitcoin in recent times, which could suggest that this potentially imminent market-wide decline will be brutal for smaller cryptocurrencies
Bitcoin and the aggregated crypto market have seen their macro momentum stall throughout the past several weeks. This is primarily the result of BTC not being able to break above $10,000.
This recent price action has led most major altcoins to woefully underperform the benchmark cryptocurrency, leading some analysts to note that it would require a massive shift amongst market participants in order for this trend to change.
The market’s capitalization is now pushing up against a level that has proven to be incredibly strong resistance in recent times.
If rejected here, the entire market could see a harsh decline that particularly impacts embattled altcoins.
Crypto Market Approaches Key Resistance as Buyers Garner Some Upwards Momentum
The aggregated crypto market has pushed higher throughout the past couple of days, which has been driven by Bitcoin’s climb to recent highs of $9,700.
The benchmark crypto’s latest push higher has led most altcoins to also post some notable gains, with Ethereum climbing 7% over the past 24-hours while Litecoin has climbed 5%.
The crypto market’s capitalization is now fast approaching a long-established resistance level that has previously catalyzed multiple short-term downtrends.
One analyst spoke about this in a recent tweet, pointing to a chart showing the heavy resistance that it is currently navigating towards.
Image Courtesy of Crypto Michaël
This resistance exists less than $1 billion above the crypto market’s current position, and whether or not it is surmounted will likely be dependent on how Bitcoin reacts to $10,000.
Altcoin’s Could See Dire Performance if Market is Rejected
Because altcoins have been generally underperforming Bitcoin in recent times, it is highly likely that a rejection here could cause altcoins to see some intense losses.
Out of the top ten cryptocurrencies by market cap, five have been particularly weak as of late.
Ceteris Paribus – a well-respected cryptocurrency analyst on Twitter, explained in a recent tweet that XRP, Bitcoin Cash, Litecoin, EOS, and BNB are all trading down massively against Bitcoin over the past year.
“5 coins in the top 10 are down 50%+ vs BTC over the past year, a period where bitcoin is up 15%. XRP, BCH, LTC, EOS, BNB.”
If the aggregated market fails to break this resistance, these altcoins in particular could see intense downturns due to their established weakness against Bitcoin.
Featured image from Shutterstock.
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