The relationship between Bitcoin and altcoins is deep, as the altcoin season is majorly controlled by BTC’s price fluctuation. As Bitcoin is the pillar of the crypto market, its bull run tends to fund altcoin’s uptrend and vice-versa.
However, the current trend of the crypto market severely plummeted to its yearly lows as FTX’s downfall has wiped out billions of dollars from the global market capitalization as it is hovering around the $800 billion mark after plunging hard from the $1 trillion mark. As BTC’s price struggles to come out of its prolonged $16.5K bearish consolidation, it may soon thrash several altcoins to worse price levels.
Bitcoin’s Bearish Mood May Send Altcoins To A Death Spiral!
As the crypto market is left with a great scarcity in inflow, several leading assets, including Bitcoin and Ethereum, face hurdles to overcome their yearly lows. Being the center of the crypto economy, Bitcoin’s downfall makes it harder for altcoins to ignite bullish hopes for investors as it lacks investors’ trust and interest in investing in them.
A well-known crypto analyst, Dentoshi, states that the 4-hour price chart of Bitcoin struggles to break its current bearish range, which was triggered by FTX’s collapse. The analyst highlighted that BTC might bring strong bearish pressure if it fails to reach its EMA-100 trend line at $17,069.
If Bitcoin plunges more, it can eliminate all the bullish hopes of altcoin’s investors as several strong coins may drop heavily, as indicated by a popular crypto analyst CryptoCapo. Capo predicted that BTC price might witness some upward bounces, which can be a bull’s trap, and altcoins might witness a drop of over 40%-50% if BTC drops between the $12K-$14K range.
As the crypto market’s bottom capitulation has just begun, it may bring a decisive week to drive major altcoins to an extreme fear zone.
ChainLink Price Analysis
LINK price rings its bear bell as it lost its previous support levels caused by FTT’s collapse. Looking at the daily price developments, LINK has faced a strong rejection near its EMA-50 trend line at $6.9, and currently, the asset trades at $6.8. However, the RSI-14 moves around a strong buying pressure near the 50-level, which may force LINK to test its resistance between $7-$7.2.
If LINK fails to hold near $7, it may follow a strong downtrend to $6.2, with much room to drop further to the Bollinger band’s lower limit of $5.6. Moreover, the MACD line still trades near a danger zone below the signal line, signifying a solid bearish momentum for LINK ahead.
Solana Price Analysis
Solana is witnessing an intense crucial price zone of dropping further below as BTC price failed to break $17K and now trades near $16.5K. SOL’s price faced rejection at $14.96, plunging it near $14 in the last 24 hours.
If BTC continues to trade in a more bearish range, it can soon trigger Solana to fall near $11.5. The ongoing trend indicates that a breakout below the 23.6% Fib retracement may push the SOL price to break its pivotal support level at $9, which can bring new lows to the Solana price chart. The RSI-14 is also not promising a bullish reversal as it trades in an overselling zone of level 35, which may bring an intense downward momentum for SOL.
Binance Coin Price Analysis
BNB has experienced a significant recovery trading session following Bitcoin’s surge above $15.5K. BNB successfully recovered from its crucial support level of $250 and continues to trade above 9-day and 21-day moving averages near $300.
Unlike other altcoins, Binance coin marks a green territory in the price chart as it is completely under bulls’ domination. As the RSI trend line moves above the 50-level, BNB may trade at new highs between the $350-$400 range if it maintains its price above the strong resistance at $310.
However, a failure to break $17K for BTC may bring an overall downtrend for the altcoin market, and BNB will be no exception. BNB may accelerate a strong downtrend if it falls near $260, below which it may retest its support level at $250.
However, there has been a historical trend of investment inflow to the altcoin market if leading assets fall below investors’ expectations, forcing them to shift their attention to a low liquidate market like altcoin for further investment. After making a significant profit or a slight loss in BTC, it is expected that investors may involve their investments heavily in altcoins, resulting in a price pump ahead.