Bitcoin’s 7%+ rally today, added nearly $1,000 to its price, sees altcoins soars to new lows, as traders look to lock in potential profits on BTC; in case Bitcoin reaches new highs. Or as we otherwise refer to it as FOMO (fear of missing out).
When Bitcoin surges and looks to re-test new important resistance zones, Bitcoin’s dominance increases. Resulting in money exiting altcoins and entering Bitcoin. Naturally, this also has the knock-on effect that altcoins BTC price in particular suffers. Today was no exception to that rule, as we see many major cryptos taking a beating.
Komodo tops the list, as it in particular is hard hit by today’s Bitcoin price surge. Komodo has sound fundamentals, reasonable trading volume and is listed in the top 100 of cryptos on coinmarketcap, ensuring max exposure to traders.
Komodo is down in its BTC price with 18% at the time of writing (for the day), falling from 0.00016900 to 0.00012276 BTC. In dollar comparison, it is down from today’s high of $1.87 to $1.51.
As altcoin season has not kicked in yet, as everyone’s eyes are on Bitcoin, naturally, we should not expect to see any new all-time highs here either in the short term.
Since its most recent high on June 10th and its recent lowest low on 26th June, Komodo is currently looking comfortably at support at 0.236 Fibonacci or 0.00012120 BTC per KMD. If Komodo is able to hold this support, there is a reasonable chance that KMD will be re-testing its next 0.382 Fibonacci (0.00014070 BTC), providing volume allows. A potential increase of 14.61% from its current price point.
Litecoin is always a fan-favorite, as it is considered the little-brother to Bitcoin. Litcoin’s daily price is down by 6.02% at the time of writing for the day. Litecoin tested this region on the 27th and 29th of June when it did a double bottom on the 1-hour charts. Otherwise, Litecoin has not tested this region since February this year, as it has had an incredible this summer.
Litecoin may look to re-test the low at 0.00951000 BTC, from the 27th June. Providing Litecoin holds this support, and liquidity from Bitcoin flows back into altcoins, we may see Litecoin re-test its 0.236 Fibonacci levels again at 0.01035800 BTC in the near future. The green candle 0.00982400 BTC is a strong signal, rejecting new lower lows and establishing the level of support around the psychological 0.01000000 BTC levels.
It is worth noting that Litecoin’s low from the 4th July, when Bitcoin did a similar move as today, it had a lower low than it is currently testing. If Litecoin builds a higher low, we should be seeing positive momentum for Litecoin in the short term, with a narrowing trading range, as it sets to establish lower-highs and higher-lows. A similar pattern that Bitcoin has seen since its YTD high of $13,381.
Chainlink has recently become one of the top contenders after Google openly showed its support for the cryptocurrency in their official blog. If you want to read more about this, you can find further details in a previous insight piece from Bitdominator here.
Since its recent high, as a result of launching on Coinbase Retail and Pro as well as officially being backed by Google, it has seen a bit of retracement to lower levels. This is a natural and healthy correction needed in order to sustain a healthy upward momentum. Needless to say, this presents an opportunity for entering when all eyes on Bitcoin start moving towards altcoins.
It may be a little premature to call in a potential bottom for Chainlink, as the levels it is trading at today, its never traded at before. We strongly recommend you monitor this closely, to find a relevant entry and exit points to maximize your ROI. With it entering the overbought zone, we should expect either side-way motion of a potential upward movement in the short term.