Sahana Vibhute
The resistance levels of the star crypto, Bitcoin are constantly plunging down. From the levels around $32,300, the resistance dropped to $30,400. After hovering at these levels for some time, the BTC price dropped hard, lowering the resistance to $29,600 now. However, currently, BTC prices have plunged below the interim support levels just below $29,000. And hence the fear of the market losing its stagnancy emerges.
It is a known fact that the majority of the altcoins do follow the BTC price action which is currently pretty much uncertain. On the other hand, as reported by Coinpedia earlier, Bitcoin is primed to hit an 18th month low below $23,000 very soon. And hence it is expected that it may heavily impact the altcoins as the BTC’s dominance over the market is 45.2%.
Moreover, one of the popular analysts believes, that if the BTC price pulls a significant leg down, then altcoins like Polkadot(DOT), Solana (SOL), Avalanche (AVAX) and Near Protocol (NEAR) will drop by another 50%.
No doubt the altcoins may undergo some short bounces, but as said by the analyst, the demand areas which are 40% to 45% beneath may be tested. Further answering a query related to the liquidity for BTC, he says,
“ I think that w. the way current price action is going, a lot of sellers are out, this won’t take much to move it. Liquidity seems thin in both directions, not saying it’ll go up huge or anything but a short bounce to me makes sense,”
However, now that most of the altcoins have recorded a huge dump of around 8% to 10% from the previous day’s close, the analyst still believes some might jump high to hit the ATH. Whereas most of the altcoins are expected to bleed heavily, only 1% to 2% of altcoins may survive the crypto winter which may be extended pretty long. And hence Bitcoin (BTC) price action may heavily impact the crypto space ahead.
