Altcoins on the Rise Fueled by Bitcoin’s Momentum

Bitcoin launched toward $10,000 on Thursday after shrugging off Monday’s Doji candle that saw its price drop to just over $9,000. Altcoins followed suit and many of them gained over 8%, including KICK, LSK, TRX, and HC. These price movements mean the crypto market is in its best shape since August.

Altcoins on the rise fueled by Bitcoin's momentum
Bitcoin’s recent surge leads the way for altcoins to rise as well | Image Source:

The past three days have been particularly kind to the crypto market with several altcoins recording impressive gains as they brushed off the weak trend that had characterized the early part of the week. This shouldn’t come as a surprise though since for the most part, altcoins have often followed the price movements of the number one cryptocurrency, Bitcoin. 

As of the time of writing, Bitcoin is trading at $9812 on Bitstamp, one of its highest prices since September, which signifies over 36% year-to-date gains, easily surpassing the broader financial market.

BTC indicators are signaling strong bullish momentum above the USD 9,550 and USD 9,750 levels | Source: Trading View

Top Altcoins Ascend

Ethereum has risen over 5% to trade at over $221. The second-largest cryptocurrency by market cap is up more than 63% since the beginning of the year and is expected to test the $235 level should its bull run continue. 

XRP has also been up around 2% in the last two days and about 46% since January 1 with its price currently in the $0.275 and $0.280 support levels. It did face a strong resistance near $0.285 but if it is able to break through, then it could extend its run to the $0.300 level. On the flip side, a break below $0.275 might trigger a downside correction, especially in the wake of Ripple releasing another 100M XRP from its escrow account

Bitcoin Cash price also edged up above the $440 and $450 resistance levels though it is facing strong resistance at $457 and is currently trading between $435 and $455. However, the year to date has been more promising since the price of Bitcoin Cash has more than doubled since January 1. Should it break through this current resistance, BCH could gain pace and test the $470 support levels. 

Litecoin appreciated above Wednesday’s $67.75 and is currently testing the $75.00 resistance area. On the upside, LTC bulls could be aiming for the $80.00 level in the near term should their momentum continue.

Other Altcoins Recorded Gains too

Binance Coin, Cardano, EOS and Stellar also put up steady gains. Tron, the 12th largest crypto asset by market cap, also went up over 10%. Many smaller altcoins, including KICK, LINK, HC, BTT, KMD, XVG, ZB also gained more than 8% in the last three sessions. 

Taken as a whole, the cryptocurrency market peaked just over $279 billion in the last seven days, the highest since August. 

Cryptocurrency market sentiment seems to be improving | Source: CoinMarketCap

Despite the sustained upward push, traders and HODLers must remember that the crypto market is still vulnerable to extreme volatility and steep pullbacks. Barely eight months ago, the crypto market cap was teasing $385 billion, but between June and December, the market had shed more than half its value, losing around $200 billion.

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