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ThecoinrepublicCryptocurrency3 Altcoins That Can Bleed After Bitcoin...
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3 Altcoins That Can Bleed After Bitcoin Falls Below $60K

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The total market capitalization of cryptocurrencies is $2.36 Trillion, 2.6% less than the value recorded a day ago. Meanwhile, Bitcoin’s (BTC) efforts to bounce back have been characterized by mixed signals that have alarmed investors. Trading guru Alan Santana, who refers to Bitcoin as an SD-Wave or an SSD-Wave, also expects Bitcoin to decline significantly.

Decreased Demand Signals BTC Price Fall

An SD-Wave could mean that prices would be cut by as much as 20-30%, while an SSD-Wave could mean that prices would be cut by 50%. Recent chart data have indicated a probability of an SSD-Wave, which has restricted a cautious approach to investors. The BTC/USD chart shows that the trading volume gradually decreased over the past four months, which signals a decrease in buyers’ interest.

Source: Alan Santana /TradingView

This weakens the demand at the current price level (press time), which may imply more falls in the future. The current negative overall perception and decreasing trading volume can cause the current levels of support to be broken, leading to further depreciation. The price action is still bearish, as the downward trendline is still intact, and the price cannot overcome it.

Bitcoin’s Price Support Level Crucial at $57,500

The preceding primary support level was around $57,500 in March 2024, which has served as support in the past and can potentially arrest a significant drop. But breaking this level would indicate a worse situation. The projected level based on altcoin correlations is around $40,000; thus, Bitcoin may follow the trend.

Such a drop to this level would signal a severe market decline that may lead to more declines in the cryptocurrency market. The $35,000 support level of January 2024 is an essential historical level that may be tested in case of an SSD-Wave. Going below this level would indicate a long-term bearish market.

Source: Alan Santana /TradingView

Almost all altcoins highly connected with Bitcoin have already reached the levels observed at the beginning of January 2024. In the past, the movement of altcoins first has given signals on the market’s direction, and with the current big falls in the altcoins, it can be expected that Bitcoin may follow the same path. This is where the investors need to be careful, as seen in the following correlation.

XRP, Cardano, Solana Tied to Bitcoin’s Fate

The current market outlook remains uncertain, with Bitcoin’s potential downturn casting a shadow over the entire cryptocurrency market. The correlation between Bitcoin and altcoins like XRP, Cardano, and Solana suggests that a significant downturn in Bitcoin could also lead to substantial declines in these altcoins.

Here’s a briefer on the price charts of these cryptos at press time:

XRP is trading at $0.4662, a decrease of 3.19% within 24 hours. Despite its market capitalization of $26.71 billion and trading volume of $662.28 million, XRP is still relevant in cross-border payments and financial institutions. Nevertheless, XRP is closely connected to Bitcoin and may fall with it, which is a possibility.

Cardano, at $0.4062, has registered a dip of 1.60% in the last day. The coin’s market capitalization is $14.63 Billion, while its trading volume is $286.61 Million. Cardano’s current growth, in particular, is still based on the principles of scalability and interoperability. For this reason, Cardano remains sensitive to the fluctuations of the Bitcoin market.

Solana is trading at $141.77 and has remained relatively flat, with a 4.98% downturn in the last day. It has a market capitalization of $6883 billion with a trading volume of $193 billion. Lauded for its fast speeds and low fees, Solana draws in developers and projects and thus has a stable performance linked to Bitcoin’s price.

The current market situation is relatively unstable, with Bitcoin’s possible decline affecting the whole cryptocurrency market. The relationship between Bitcoin and other digital currencies such as XRP, Cardano, and Solana means that if Bitcoin is likely to fall, the altcoins are also expected to drop in value.

Disclaimer

The contents of this page are intended for general informational purposes and do not constitute financial, investment, or any other form of advice. Investing in or trading crypto assets carries the risk of financial loss. The forecasted data (also called “price prediction”) on this page are subject to change without notice and are not guaranteed to be accurate.

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Ahtesham Anis
Ahtesham Anis
Ahtesham Anis is a Computer Science undergrad student currently based out of India. Coming from the business background and his keen interest in Cryptocurrency and Blockchain technology is what Ahtesham brings to the table. He is always an eager learner when it comes to exploring the new technologies and topics in the crypto world.
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