The correlation between Bitcoin and the price movements of altcoins is a complex issue that investors need to carefully consider during bear markets.
The altcoin market is highly speculative and influenced by its own fundamental factors, but it is also significantly influenced by the four-year Bitcoin cycle. Bitcoin plays a pivotal role in providing liquidity to the altcoin market, especially in regions where cryptocurrencies are not well-received.
Jason Pizzino, a prominent crypto analyst, believes that another flash crash in the Bitcoin price could potentially drive many altcoins below their lower support levels from 2022/2023. This could lead to a significant decrease in the value of altcoins relative to their Bitcoin pairs.
Read More: This Week Could Be Crucial For Bitcoin & These Altcoins- But Why?
In terms of price action, Bitcoin is currently facing considerable selling pressure following the occurrence of a daily death cross between the 50 and 200 Moving Averages (MA). However, Captain Faibik, a renowned crypto analyst, believes that Bitcoin’s dominance is on the verge of surging after several weeks of consolidation.
Retesting the Support
At present, Bitcoin is in the process of retesting a critical support level of around $25.7k. If Bitcoin’s price closes below this pivotal support level in the coming days, there is a likelihood that the leading cryptocurrency may decline towards the $24k mark.
Also Read: Bitcoin Bullish Divergence Confirmed-Bearish September Could Knock-Over to Trigger An Uptober!
Investors who are holding altcoins should be aware of the risks associated with the correlation between Bitcoin and altcoin prices. If Bitcoin’s price crashes, it is likely that altcoin prices will also crash. Investors should carefully consider their investment strategies and make sure that they are prepared for the possibility of a bear market.
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