Altcoin market could see a 3040 decline if Bitcoin price falls below 60K this week
The cryptocurrency market cap saw a 3 percent decrease over the last 24 hours, settling at around $2.4 trillion on Monday during the early Asian trading session. The market sentiment turned bearish over the weekend as the price of Bitcoin (BTC) continued its downward trajectory.
Bitcoin closed the previous week near the $63k mark, a crucial support/resistance level that has heightened concerns of further market decline. In the past day, Bitcoin’s price fell by approximately 2.3 percent, trading at around $62,800 on Monday. If Bitcoin’s price consistently remains below $63k in the coming days, the flagship cryptocurrency is likely to retest the support level above $60k.
Looking ahead to the altcoin industry, a popular crypto analyst known as Ash Crypto predicts that the market will undergo consolidation for the next 6-9 months before a potential mega altseason begins. However, the analyst warns of a possible 15-20 percent drop in the altcoin industry if Bitcoin’s bearish trend persists.
The analyst pointed out that the ALT Mcap has fallen below the mega bull trend line, suggesting that there could be a further 20 percent drop in altcoins before the next major season. Despite a potential small bounce if Bitcoin’s price rises, it seems likely that the altcoin market will experience a final round of capitulation.
Market attention has shifted from United States-based spot Bitcoin ETFs to the Ethereum network in recent weeks. On-chain data analysis from Santiment reveals that the Ethereum network recorded its highest number of active addresses in three months, surpassing 617k addresses last week. The approval and upcoming listing of spot Ether ETFs in the US have raised bullish speculation for the mid-term, similar to the impact seen with spot BTC ETFs earlier this year.
In preparation for the anticipated listing, BlackRock and Fidelity have seeded their respective spot Ether ETFs. The market is closely watching these developments, eager to see how they will impact the prices of altcoins and Bitcoin in the coming weeks.
Tags: Altcoins, Bitcoin, Price Analysis.