Bitcoin [BTC] closed 6.5% higher at $10,400 on a weekly scale. The week saw another altcoin dumping as Bitcoins dominance crossed above 70%. Nevertheless, the alts have made a brief comeback during the weekend. While the gains are slight, this is one of the very few instances of altcoin rise relative to BTC this year.
Crypto analyst Willy Woo, however, suggests that this rise has could be temporary. He said in a tweet,
Though locally oversold and may see some bounce in coming weeks, longer term, into 2020, I can’t see these levels holding (relative to Bitcoin).
Currently, altcoins are testing their three-year support w.r.t BTC. The weekly RSI of altcoins with respect to Bitcoin’s Market capitalization is currently oversold. This could be a level of reversal. However, Woo suggested that room to grow is not very large. According to him, the next rise could be one of the last attempts for altcoin revival.
ETH/BTC 1-Week Chart on Bittrex (TradingView)
Moreover, while Bitcoin is finding utility as a store of value, the fundamentals and regulation around altcoins have been weak post the ICO bubble of 2017.
Cryptocurrency MarketCap Relative to Bitcoin (Source: Tweet)
According to him, the parity between Bitcoin and crypto market was close before 2016. However, due to the ICO scams and fraudulent investment schemes, the price blew-up in a bubble.
Here’s the same data visualised on the price domain. Total crypto cap priced in BTC supply.
The 2017 gap that opened up was made of ponzi fluff, ERC20 ICOs investing in other ERC20 ICOs blowing up their combined caps like a fiat money printing machine.