The altcoin market has become extremely dependent on the bitcoin situation over the past few weeks. On June 15, the main cryptocurrency managed to overcome the threshold of $40,000, which had a positive effect on the entire market, as it indicated the beginning of an upward trend. However, today, June 16, bitcoin quotes faced resistance in the area of $40,600, which negatively affected the position of the entire altcoin market. As a result, the positive attitude of investors in the long term and uncertainty about the current situation of cryptocurrencies have created a situation in which the market needs momentum.
The correlation between altcoins and bitcoin is most clearly seen in the example of Ethereum. When BTC broke the $40,000 mark and struggled with the resistance around $40,600, the ethereum indicators also grew. The asset managed to overcome the $2,600 mark and showed excellent dynamics of price growth. However, within a few hours, the situation changed, and as of 12:00 UTC, the main altcoin sank in price by 4.5%, and the local dynamics of price changes became negative (-2%). All this happened simultaneously with the fall of bitcoin to the mark of $39,000. In addition, there is a significant decrease in social activity in the ETH network. Transaction fees on the asset's network have fallen by 90% over the current month. The reason for this was the general decline of the cryptocurrency market, as well as the development of networks of altcoins such as Cardano and the growing demand for bitcoin. The decrease in the number of transactions in the asset's network is also evidenced by the extremely low level of daily trading volumes ($24 billion). In the current situation, the local task of ethereum is to consolidate over the border at $2,500 and then move to $2,800.
A similar situation is observed with the XRP token. The cryptocurrency moved to an important threshold in the region of $0.904 but failed to gain a foothold on it. As a result, the coin sank to the usual level of $0.873, from where it began to show growth. However, the aggravation of the situation with bitcoin caused XRP/USD to sink even more, to the level of $0.804. Over the past day, the asset has fallen in price by 4.5%, and the local dynamics of price changes indicate a continuation of the downward movement. At the same time, interest in cryptocurrency dropped significantly, which led to extremely low daily trading volumes, in the region of $3 billion. Given the slight lull in the market, the cryptocurrency will continue to fluctuate and is unlikely to be able to overcome the $0.900 threshold without significant momentum.
Litecoin indicators showed that the asset was successfully approaching the important mark of $180. Having rolled back to a local minimum of $160, the cryptocurrency increased its pace and came close to the psychological mark. However, market uncertainty and investors' fears caused LTC to fall in price by 4.5% over the past 24 hours. At the same time, the cryptocurrency continues to fall in price, as indicated by the local dynamics (-2.5%). However, the altcoin has every chance of staying at the $160 mark. At the same time, the coin has no prerequisites for the start of growth, as evidenced by the extremely low volumes of daily trading.
There is an atmosphere of uncertainty in the cryptocurrency market. Institutional players have increased the necessary volumes of coins. At the same time, the news background normalized, and the bitcoin indicators broke through the $40,000 mark. Everything indicates that the crypto market is ready for a new bullish trend, but it is important to take into account the 80% correlation between BTC and altcoins. Bitcoin continues to fluctuate and has already fallen beyond $40,000, which instantly affected the quotes of other cryptocurrencies. Despite the long-term confidence of investors, the current situation is not conducive to active action. With this in mind, the further movement vector of the cryptocurrency market will depend on the performance of bitcoin. The cryptocurrency market is at a crossroads, and it will soon become clear which vector of movement of cryptocurrencies will become the main one for the coming weeks.
The material has been provided by InstaForex Company - www.instaforex.com