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Altcoins Start to Dump, Is Bitcoin Ready to Make a Big Move?

Altcoins start to dump, is bitcoin ready to make a big move?

Altcoins Start to Dump, Is Bitcoin Ready to Make a Big Move?

Altcoins start to dump, is bitcoin ready to make a big move?

Back in 2017 a clear pattern emerged between Bitcoin and the
altcoins. BTC was (and still is) the bellwether for the entire market, leading
the peaks and troughs. However, they were also inversely correlated in that
altcoins would often dump before Bitcoin made a big move.

Altcoins Losing Steam

The same could be happening again as Bitcoin maintains its hold on the $5,200 price level but its brethren start to fall back. As a result Bitcoin market dominance has climbed a percent or so back to 51.3% over the past week or two.

Today’s markets are a sea of red as altcoins begin to beat a retreat. Total market capitalization has dropped back below $180 billion after reaching a new 2019 high of just below $186 billion yesterday. Markets have lost over $5 billion in the past 24 hours and those losses are accelerating during today’s Asian trading session.

The largest daily losses at the moment are with Binance
Coin, Cardano, Bitcoin SV, NEO, Ethereum Classic, and Dogecoin which have all
lost over 7 percent on the day. Litecoin and Bitcoin Cash, two of April’s big
performers, are also cooling off today with losses of around 6 percent.

Even the three newly listed altcoins on Coinbase Pro are losing today. EOS is down over 2% to $5.40, Maker has dumped 7% to $707 and Augur has dropped 6% back to $20.40. Coinbase is no longer the provider of coin pumps and this latest announcement has actually had the opposite effect.

Markets are beginning to cool and the altcoins are getting
hit first. This could either be a sign that traders are moving back into
Bitcoin or that BTC itself is about to make a big pullback. Two years ago this
type of market action would signify a big move coming for Bitcoin but in today’s
market of multiple stablecoins it is unlikely to be the case.

The calls for a pullback have intensified as Bitcoin
approached a massive resistance point at the 50 week moving average which is at
around $5,600. Over the past 24 hours BTC hit $5,300 twice before dropping back
and at the time of writing it is has just fallen below $5,200 support;

Several other analysts have also speculated that a correction is imminent with Bitcoin dropping back into the $4,000s. The worst case scenario is a final capitulation back below $4k, which has also been predicted by many. This will certainly wipe out all gains made by most altcoins this year but will also serve as a great opportunity to accumulate for the next big rally.

Published at Tue, 09 Apr 2019 06:01:09 +0000

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Bitcoin Cash Network Shrugs off Mempool Backlog With Relative Ease

Network congestion is a problem most users would associate with bitcoin or Ethereum. Both of these networks have seen their fair share of issues in this regard. bitcoin Cash saw its transaction backlog grow quite spectacularly this morning. For several hours, someone – or a group of people – were flooding the network with very low-fee transactions. As a result, there was a minor delay in transactions, although things were well within the acceptable limits.  Why any of this is happening right now, has yet to be determined.

bitcoin Cash has not been subject to major spam attacks as of yet. bitcoin, on the other hand, seems to get clogged up with transactions every other week. Keeping this in mind, it’s not surprising to see so many people flock to BCH in recent weeks. This has caught the attention of whoever is responsible for the current “spam” on the BCH blockchain. More specifically, there have been a ton of new transactions to fill up the blocks rather quickly. A rather worrisome development, although things were handled relatively well.

bitcoin Cash Handles the Business

The big question is why anyone would flood the BCH network with low-fee transactions. At a price of 1 Satoshi per byte, inflating overall fees would be rather difficult. After all, users can easily pay double that and not have their transactions delayed. Even with the higher fee, Bitcoin Cash remains a lot cheaper than BTC right now. With this cost in mind, it would cost approximately $16,000 to flood the network for an entire day. That doesn’t seem like much money, thus it is possible this is a well-orchestrated attack. For now, there is no solid evidence to back up such claims.

Unlike what one would expect, this issue has not caused many problems. The bitcoin Cash mempool has been cleared relatively quickly and things are returning to normal. If this was an attack, it was a very weak attempt at causing permanent damage. If such an issue were to affect bitcoin, the fees would skyrocket and transactions backlogged for 24 hours or more. Having a larger block size can be rather beneficial in this regard. It also shows how BCH is better at scaling compared to bitcoin, at least for now.

Whether or not this is a prelude to more attacks, remains to be seen. No one will be surprised to see issues like these arise again in the future. The “fight” between BTC and BCH supporters is far from over Although it’s not exactly a turf war, hostilities are not entirely uncommon either. Attacking a network with low-fee transactions is despicable We don’t know if that is what has happened to bitcoin Cash, though. In the end, the issues seem largely resolved, which is a positive sign.

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