The price of Bitcoin surpassed $ 19,000 on November 24th and hit $ 19,299 on Binance. As BTC rebounded, major alternative cryptocurrencies fell dramatically – including Ethereum and Ripple’s XRP.
It remains to be seen whether the trend of profits from altcoins flowing into Bitcoin Union will continue in the near future. One variable, however, could prevent the altcoin market from seeing a wider downturn – and that’s the resistance at $ 20,000.
Bitcoin has passed the $ 19,000 mark and is now approaching an all-time high of nearly $ 20,000.
But until the $ 20,000 mark is broken, it serves as an important area of resistance. So that could mean that the price range is between $ 19,000 and $ 20,000.
If Bitcoin shows signs of consolidation between the two levels, it could help Altcoins rebound. Ethereum and Ripple’s XRP fell rapidly when BTC started rising, but have since rebounded.
Ripple’s XRP, for example, fell from $ 0.72 to $ 0.567, down 20% in a matter of hours. Although Ethereum saw a smaller pullback, it saw a similar price move.
Ethereum was down 5% as Bitcoin started its way towards $ 19,000 during the same period as XRP.
Ripple’s XRP saw a sharp decline during the day due to its extreme volatility. While XRP peaked below $ 0.8 on Binance, the token hit $ 0.9 on Coinbase. This caused a real frenzy about the crypto currency and even temporarily led to a Coinbase failure.
After the altcoin market retreats, the likelihood of a short-term recovery is higher than a continued correction.
In the short term, the $ 20,000 mark remains a crucial area of resistance for Bitcoin. Therefore, the likelihood of a recovery in the altcoin market remains high as long as BTC does not hit a new all-time high.
When BTC crosses the $ 20,000 mark, there is a high chance that it is soaking up most of the volume in the cryptocurrency market. Should this happen, the momentum of the altcoin market could weaken in the short term.
Ethereum is seeing a particularly sharp correction after hitting a multi-year high of $ 625.
ETH is likely to see a deep pullback due to a sell-the-news reaction from the market. On November 24th, Ethereum officially reached the threshold for the launch of Eth2.
ETH may have pulled back as cryptocurrencies tend to decline after big announcements. But traders had also predicted short-term consolidation after ETH hit $ 625.