Bitcoin fell below $60,000 on June 24 for a few hours before promptly recovering above the key support level. However, many top altcoins have outperformed BTC over the past week, rising nearly 10% against it at one point. The smaller tokens did experience big losses leading up to this short-term bearish price action, but they have resisted falling further into the abyss.
Is this the Altcoin Bottom?
XRP, Shiba Inu, Cardano, and Solana have had a bearish outlook for the past two months. Including Ethereum, the altcoins have lost roughly 22% of their value since reaching an all-time high market capitalization of $1.24 trillion in mid-March. The price has been on a downward trend since then, with a brief period of resurgence.
Here is the altcoin market capitalization performance from the last six months:
Image Source: TradingView
However, it is interesting that the altcoin market has remained largely steady for the last two weeks. For reference, here is Bitcoin’s price action during this time:
Image Source: TradingView
So, at one point, altcoins were plummeting worse than Bitcoin, but they stopped around 2 weeks ago and have largely remained steady ever since, apart from a brief price recovery during the last 24 hours. Bitcoin, on the other hand, has continued posting losses during this time. This has resulted in speculations regarding a possible long-term altcoin bottom.
According to Michael van de Poppe, a popular Dutch crypto influencer, many altcoins have posted double-digit gains against Bitcoin (BTC). This is seen as an indicator of a potential market bottom.
Similar sentiments are echoed by other top crypto analysts, particularly those heavily invested in meme coins and AI-driven projects. The price stability suggests they might be correct, but this situation is likely to hold only if Bitcoin manages to stay above the key $60,000 support level. If the leading cryptocurrency falls below this critical support level, altcoins will likely follow suit soon after, leading to another bearish trend.
Concluding….
Overall, the price losses reported by Bitcoin and the altcoin market are within normal limits. BTC has fallen 16%, while the altcoin market has registered a loss of 22%. So, despite the panic propagated by crypto naysayers, the digital currency losses aren’t indicative of a major market meltdown, and they are likely to bounce back in the third and fourth quarters.
