Ethereum, altcoins at risk of deep decline if Bitcoin breaks the $ 30,000 mark

According to market analysts, if the Bitcoin price corrects by 30%, “altcoin holders” face a double risk of loss.

Cryptocurrency investors should be on the lookout for a “storm” when Bitcoin (BTC) shows negative signs in the short term.

That is a statement from Filbfilb, an independent market analyst and co-founder of the trading tool Decentrader. In a tweet posted on June 26, the analyst said that a 30% drop in Bitcoin price could cause altcoins to more than double.

Distance between Altcoins and Bitcoin

When bitcoin piled from $ 50,000 to $ 60,000 between March and May, altcoins exploded more than once. Likewise, the recent correction in the Bitcoin market, when the largest cryptocurrency fell from around $ 65,000 to just $ 28,000, caused altcoins to drop much lower.

Filbfilb noted that altcoins are faced with what is known as “risk following”, which implies that even a small change in Bitcoin could cause altcoins to fall many times faster. The statement came when Bitcoin price fell to $ 30,173 after a downward revision of 15.58% this week.

Note the Quick Point on the alts, if not already visible;

As a reminder, alts exploded while BTC was between 50 and 60k

Since then, they have seen a sharp correction but are still above where Bitcoin was at 50-60. pic.twitter.com/dtDf6Bvmgt

– fil fil (@filbfilb) June 25, 2021

“[Altcoins]therefore carries a greater downside risk than Bitcoin [BTC / USD] at a dangerously low level, ”tweeted Filbfilb. “If Bitcoin goes down, in the worst case, 30% more loss, I think [altcoin] will more than double from now on. “

Bitcoin’s decline in May and June brought BTC’s current performance down to 5.71%. Although the top cap altcoins have also fallen at the same time, their returns since the start of the year have been impressive.

For example, Ether (ETH), the second largest cryptocurrency, is down more than 60% from its mid-April high of $ 4,384. The annual return is 141% at the time of writing. Similarly, Dogecoin’s YTD yield is 4.112%, even after falling nearly 80% from its all-time high of $ 0.76.

So it seems that altcoins have offered a better return opportunity for investors than Bitcoin. Hence, traders can cover their losses in the Bitcoin market by simply taking profits and / or turning the money back to BTC.

Bitcoin and the $ 20,000 level 20,000

So far, despite repeated attempts by sellers, Bitcoin has avoided a deeper drop below $ 30,000.

Many analysts, including Mercuryo founder Alexander Vasiliev, see Bitcoin’s bullish resilience as a signal that it will break above $ 40,000 in the medium and long term and climb to its previous high of $ 64,000.

However, several analysts previously interested in Bitcoin reversed their predictions after the market’s recent bearish correction.

For example, Scott Minerd, chief investment officer at billionaire investment firm Guggenheim Partners, told CNBC on Friday that he expected Bitcoin to plunge to $ 15,000.

In February, when Bitcoin broke the $ 30,000 resistance, the same expert predicted that the price of BTC would hit $ 600,000.

Clem Chambers, executive director of financial analysis website ADVFN.com, also expects bitcoin to decline, noting that bitcoin could drop to $ 20,000 due to speculative sentiment. He wrote in his SeekingAlpha article:

“The next stage seems to be here, and it will be the last big step towards a repetition of the crypto winter we went through before.”

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