Despite looking like they were on their last legs just weeks ago, altcoins have defied all odds by rallying significantly this morning.
The rise in the value of altcoins coincides with a slight rise in Bitcoin, with the world’s largest cryptocurrency regaining support above the $10,000 level.
Among the best performing digital assets has been EOS, which is up 10% to $4.58, and Ethereum, which has broken through a level of resistance at $222.
Bitcoin’s dominance in the market has been slashed to 64.7% from just below 66%, which could signal a trend reversal in the cycle of altcoins.
However, if Bitcoin’s price languishes and falls back below $10,000, fear and pessimism could return to the market which would consequently have an adverse effect on the value of altcoins.
It’s also worth noting that the four-hour death cross on Bitcoin is still valid, and it could still get worse if the 100 EMA crosses the 200 EMA to the downside.
In order for a golden cross to play out, Bitcoin would need to retest levels of resistance at $10,650 and $11,200. A rejection from that level would be catastrophic as it would spell another lower high.
But for the time being, altcoins – despite being battered throughout the past 24 months – seem to have regained some life.
It remains a stark contrast from the start of 2018, when several altcoins surged by more than 3,000% in a hype-driven bull market, but it’s still an encouraging sign.
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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.