Binance Research Reveals Altcoins Posted Visible Gains Against Bitcoin; Another Bullish Divergence?
Bitcoin made significant strides in a few months now as it is rallied around $7,000 to $8,000. Due to the bullish run posed by bitcoin, many seems to shift their attention to the ‘king coin.’ The high price rally of bitcoin really made altcoins go below by 40 percent at some time, but things are beginning to look brighter for altcoins, and we may see intense competition between altcoins and bitcoin very soon.
It is necessary to know that altcoins might be on the brink of making a remarkable comeback, this is according to research done by Binance Research, which is one the biggest crypto-research group in the world today. At the start of 2019, Altcoins was steady, which urged many crypto experts to suggest that it is the altcoins’ season. However, this steady rise of altcoins didn’t last long when BTC broke the above $5,000 in April 2nd.
Are altcoins about to make a comeback? pic.twitter.com/rzD1xliV4l
— Binance Research (@BinanceResearch) May 21, 2019
As bitcoin consolidates and rally around $7000 to $8000, altcoins make an uptrend and their total market cap increased by 15.5% within a week (from May 14th to May 20th). In this period, Bitcoin briefly increased to $8,000 but dipped below $7,100.
The chart revealed through a tweet by Binance Research revealed how Altcoins staged their most robust 7-day rally in 5 months.
Through the chart, the last most significant 7-day increase was 16.2% against bitcoin, and this took place from Dec 23rd to 29th. In this timeframe, bitcoin surged beyond the $4,000 price mark but fell back to $3,650.
Altcoins have seen lots of dips against bitcoin consistently since the start of April. Over a month now, the price of BTC has increased by 90% and now at $7901 at the time of press. Recently, altcoins have paused their growth.
Also at the time of writing, the market cap of altcoins as revealed by Binance Research when it comes to bitcoin has declined by 34% since the price rally started back in April. The research added that the dominance of bitcoin over other altcoins in the market readily confirms a bullish run based on the historical chart.
“Over the past five years, this type of divergence has occurred more in bull markets (246 of 300 days),” according to Binance Research.
It is also necessary to know that the latest BTC push and even the altcoins plunge led to a forty-day progressive divergence of the price of bitcoin when comparing with the total market cap of altcoins. Notably, two successive negative price alterations occurred in January and July last year.
Binance’s bull-run idea was noticed by the positive price divergence of Bitcoin and altcoins. Bitcoin reached a high of $19,500 for two times. The first one which occurred in 32 days was in October 2017, while the second was late December 2017, when the bullish run was high.
Before these changes in price, the most significant positive divergence happened in separate times: October 2015 (lasted 71 days), the amount of BTC was above $4,000, and the other one occurred within 89 days.
Overall, lots of crypto-experts believe that correlating altcoins to U.S dollars is more significant than to bitcoin.