The BTC market has recently been a source of much anticipation and exasperation for the crypto community as it persists in a stubborn price-range. Showing minor gains in recent days, the fact that it continues to remain range-bound in close proximity to its recent local high is a sign of hope for many investors. This may suggest an absence of panicked selling; instead, there seems to be an air of anticipation for the next big move up.
The repercussions of BTC’s relentlessness on altcoins are notable. While a wave of caution undeniably permeates the markets, it hasn’t deterred investors from exploring opportunities in select altcoins like DOGE, MKR, OP and XDC. In fact, data shows that there’s been a gradual shift in focus towards these smaller cryptocurrencies, with BTC’s market dominance dropping to 48% from over 50% on June 30.
However, as we often see in the world of cryptocurrencies, the fate of altcoins often parities BTC’s movements. If it sees a sharp downturn, altcoins might be hit with a subsequent sell-off, which is why it is equally important for traders to keep tabs on BTC’s price action even if they prefer focusing on altcoins.
On a different note, Dogecoin is showing resiliency at current levels above $0.08, but, like always, risks are present in the crypto market. If bears take control of the market, a dip below the 20-day EMA suggests that traders could be selling on rallies. If this happens, the DOGE market could slide down to a breakout level of $0.07.
While the MKR market has managed to clear resistance at $1,200 after several months of contestation, it could potentially uptrend to $1,600 and then $1,900. However, if bears manage to bring the price back below $1,200, it could signal the existence of a bull trap.
Unexpected trends are also emerging from the Optimism (OP) and XDC Network markets. OP has been showing the first flickers of a potential new uptrend, and XDC has soared from $0.03 to $0.06 in the past two weeks, showing a robust uptrend.
Nonetheless, despite these optimistic signs across some altcoin markets, the underlying caution tends to stem from the fact that the crypto market’s fate invariably swings in tandem with BTC’s movements. In these conditions, market participants need to maintain a steady head, never forgetting the inherent risk and volatility in the world of cryptocurrency.
Source: Cointelegraph
