Bitcoin breakout boosts altcoins, but fear of a sudden pull-back looms large – ANALYSIS

Bitcoin breakout boosts altcoins, but fear of a sudden pull-back looms large – ANALYSIS

Known as ‘alt-coins’, the alternatives to bitcoin – the original crypto – are enjoying something of a renaissance after being dragged into the doldrums of a year-long ‘crypto winter’. However, as bitcoin rose above its $5,900 sticking point and into the heights above $8,000 earlier this week, the glow of a bullish market sentiment was being felt across the board. Whether this lasts, though, is yet to be seen as the potential for a dramatic pull-back is looming. BTC found itself nudging a remarkable $8,400 earlier in the week to the resounding chants of many observers who were, perhaps prematurely, claiming the return of the bull market as bitcoin’s pattern began to match the outrageous surges of 2017.

But, even with an anticipated move up to a seemingly unlikely $10,000 in sight, Thursday saw the market enthusiasm halted in its tracks like a child suddenly realising it had wondered too far from its parents.

Further minor slumps began to unfold, and BTC found itself heading into what could prove to be yet another critical weekend loitering around $7,000.

Whichever way it chooses to go over the next few days, there is no denying that this rich vein of crypto form has reignited interest in the digital currency markets as BTC’s lift out of the swamp has pulled some popular altcoins to the safety of the banks.

Ethereum, for instance, was the first to respond to bitcoin’s rallying call, leaping some $100 dollars to a 2019 high of $280 before it settled at around $225.

Published at Fri, 17 May 2019 14:25:00 +0000