Bitcoin Price Bearish: Traders Focus on LINK, MKR, ARB, THETA
As Bitcoin stagnates some altcoins have capitalized. Will we see an altcoin season?
Key Takeaways
- Bitcoin falls by 6% while some altcoins continue to rise.
- LINK and MKR are among best-performers.
- Bitcoin’s dominance continues to ease.
In September, Bitcoin initially traded around $25,500, dipped below $25,000 on September 11, briefly rebounded to $27,450 on the 19th, and then retraced by 6% to $26,000, leaving it just $500 away from its monthly opening price.
Despite intermittent price spikes, Bitcoin has primarily moved within the $26,000 range since August 18, resulting in traders shifting their attention to alternative cryptocurrencies showing positive signals such as LINK, MKR, ARB, and THETA.
In this analysis, we’ll assess the trading potential of these altcoins and their performance in comparison to BTC.
BTC Vs. ALTS
When comparing Bitcoin to the mentioned altcoins on a chart, it’s evident that they’ve all exhibited more pronounced movements compared to Bitcoin, albeit in varying patterns. Among them, MRK stands out as the top performer, with its price surging from $1,037 on September 1 to a peak of $1,350 on September 21, marking an impressive 30% increase.
Next up is LINK, which has experienced a 24% increase, rising from its September 1 low of $5.87 to its current price of $7.30. Unlike MKR, which saw a minor pullback after September 21, LINK’s upward momentum continues.
Arbitrum, however, has maintained its downward trend that began in mid-July when it started declining from $6.20. It hit a new bear market low on September 11 at $3.82, briefly surged to $4.76 on September 16, but has since resumed its descent, currently trading around $4.
THETA, similarly, displayed sideways movement at the start of the month, opening just below $0.60. It reached a lower low of $0.57 on September 11, revisited on the 21st, followed by a substantial 20% increase, peaking at $0.70. Subsequently, it retraced and is currently testing a significant horizontal resistance level at $0.63.
Traders Didn’t Care About Declines
Despite the price decline in ARB and THETA, traders have been keeping an eye on these tokens, as they can still profit from trends and volatility even in a downtrend.
In terms of their BTC value, these altcoins have exhibited distinct trends: LINK and MKR have experienced noticeable uptrends, ARB has seen a clear downtrend, and THETA has shown both characteristics at different points.
Bitcoin’s dominance has been declining since September 20, when it briefly surpassed the 50% mark. It has since dropped to 49.85% and remains around that range, displaying a bearish pattern. This suggests the potential for a further decrease in Bitcoin’s dominance, which could signal a more favorable period for altcoins.
Bitcoin Price Analysis
As mentioned in our previous BTC analyses, our primary expectation is for a continuation of the downtrend in Bitcoin’s price. However, we anticipate a corrective upward movement first, which should retest certain previous support levels as resistance.
We’ve observed a modest uptick from September’s initial low; however, it hasn’t shown significant recovery nor retested certain resistance levels above. Consequently, there is potential for further upward movement, possibly to at least $28,000.
On the other hand, an alternative perspective suggests that the upward movement from August 29 combined with that from September 11 may have completed a three-wave pattern, signaling the initiation of a continued downtrend towards the $22,000 range.
The price’s ability to remain above $25,000, its low on September 11, will determine whether a bullish or bearish scenario becomes more likely.
Conclusion
Bitcoin typically takes the lead, especially in a bear market. The question is, will Bitcoin’s decline benefit altcoins, or could a downturn in Bitcoin trigger a broader bearish trend throughout the market?
Given the ongoing decline in Bitcoin’s dominance, it appears that this trend may continue, possibly sparking a mini altcoin season. A declining Bitcoin could even have a positive impact on altcoins as investors seek opportunities in other markets.
If Bitcoin starts to rise, it could generate a general bullish sentiment across the market, potentially leading to increased volatility in altcoins. However, it’s crucial to note that not all altcoins will perform in the same way, so market sector awareness is essential.
What LINK and MKR, the top-performing assets, have in common is their strong ties to the DeFi sector, which could suggest that DeFi will continue to attract attention, favoring altcoins within this category.
Disclaimer
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
