Ethereum, Litecoin, EOS, Bitcoin Cash: BCH Breaks from the Pack for No Apparent Reason
The top ten cryptocurrencies traded lower on Monday, with one notable exception: bitcoin cash (BCH). The sixth largest cryptocurrency by market capitalization is riding a wave of momentum for no particular reason, setting the stage for a big vertical jump in the short term.
Crypto Market Update
The cryptocurrency market capitalization peaked near $141 billion on Saturday, but has since fallen back down to the $139 billion range. Nearly all of the top 20 coins have reported modest declines over the last 24 hours.
Ethereum (ETH) was off slightly through the morning session, slipping 0.8% to $139.44. The developer’s cryptocurrency has been steadily accumulating gains for much of 2019 after the network faced an existential crisis in the latter half of 2018. Ether currently demonstrates a bullish higher low setup, which tells us that the next rally attempt could be explosive. Read more: Crypto Price Analysis: Ethereum and Ripple Bullish Long-Term.
Litecoin (LTC) also weakened through the morning session on Monday, falling 2.4% to $60.07. Despite showing signs of slowing, Litecoin has gained 8% over the past week as long positions continue to accumulate. LTC has doubled in price since the year began, helping solidify its place in the top-five again.
EOS (EOS) was off 0.9% to trade at $3.75, a level commonly associated with heavy demand for the cryptocurrency. This area tracks until $4.60. In the last three months, the bulls have made one notable attempt to push through this range but were unable to do so. Nevertheless, the Enterprise Operating System has gained more than 4% over the past week.
Bitcoin cash was the lone cryptocurrency in the top ten to report gains on Monday. BCH jumped 5.6% to $162.07, extending its weekly rally to 25%. It peaked north of $166.00 on Sunday, its highest in over three months. The next major target for the bulls is $174.00-$175.00, the high from early January. Beyond that level, there’s little standing in the way of bigger breakout toward the $220.00-$240.00 range.
Altcoin Season Grows Warmer
Altcoins and tokens have been the major driving force behind ‘crypto spring,’ a phrase that describes the ecosystem’s long road to recovery from the prolonged bear market. Despite gaining 10% since early February, bitcoin has seen its dominance rate fall to just over half of the cryptocurrency market capitalization. In other words, bitcoin has been outdone by some of its biggest competitors, including the ones covered in the previous section.
Litecoin, EOS, bitcoin cash and Binance Coin (BNB) are some of the most notable examples of cryptocurrencies that have escaped bitcoin’s gravitational pull. This so-called ‘decoupling effect’ was also observed during the height of the bull market in 2017 and early 2018. When the crypto market peaked north of $840 billion in January 2018, bitcoin’s share of the overall market had fallen to just over a third. It would surge more than 20 percentage points over the next nine months, a period that saw most major cryptocurrencies lose two-thirds of their value.
At last check, bitcoin’s dominance rate was 50.8%, according to CoinMarketCap. Earlier this month, the dominance rate briefly fell below 50% for the first time since the summer.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.