The beginning of the year saw Bitcoin [BTC] and altcoins deep in a bearish market as they tested their lows. The probability of their demise or rise was almost equal with them sharing similar dominance ratios.
However, in less than eight months into the year, the dynamics of the cryptocurrency markets have shifted vastly. Bitcoin’s dominance has grown to about 70%.
Altcoins Break Below Support Levels
Currently, the market capitalization of Bitcoin [BTC] is $210 billion, while the combined Market Cap of altcoins is about $95 billion. Major altcoins have broken below their support levels.
Ethereum [ETH] which broke below the 0.025 BTC support level was expecting a pullback. However, continued selling pressure has driven the price below the break-out level at the beginning of 2017 altcoin run. Ethereum’s price w.r.t. to Bitcoin is currently testing 28-month support levels.
ETH/BTC 1-Week Chart on Bittrex (TradingView)
Similarly, XRP has also broken below 0.00003 BTC and is back to $0.3 support level. XRP has continued to fall back to this level repeatedly this year. The price of XRP w.r.t. Bitcoin is around 0.000025 BTC. Moreover, on further downwards move the next support to XRP is near 0.000013 BTC.
XRP/BTC 1-Week Chart on Bittrex (TradingView)
Cryptocurrencies like Bitcoin Cash [BCH] and Bitcoin SV [BCV] ‘hodlers’ are reeling under extended pressures as the total mining hash rate continues to drop. This motivates miners to switch to more profitable coins or turn off their system. Moreover, it also increases the chances of a 51% attack on the token.
All is Not Lost?
Nevertheless, Bitcoin is trading at more than ten times its price during March 2017.