NewsBTC
2023-01-03 20:34:22

Currency Expert Explains Why Altcoins Experience More Carnage Than Bitcoin And Ethereum

As the current bear market in crypto continues to deepen, Bitcoin has fallen by 78%, and Ethereum by 82%. Yet elsewhere in the crypto market, many altcoins are down by as much as 96% or more. In a recent video, Elliott Wave International Currency & Crypto Analyst Jason Soni sheds some light on why this occurs and what this could mean for various cryptocurrencies. Breaking Down Why Some Crypto Assets Crash More Than Others Bitcoin price has retraced by more than 78% from all-time highs set back in 2021. Ethereum, the second-largest cryptocurrency by market cap, saw an approximately 82% retracement from peak to trough thus far. As you move down the ranks of cryptocurrencies, the total drawdown figures deepen. Cardano, for example, suffered a 92% collapse compared to the top two cryptocurrencies. Solana, once pegged to disrupt Ethereum, dropped by a staggering 96%. Related Reading: Bitcoin Price Prediction: What Elliott Wave Theory Suggests Is Next For BTC In a new video entitled “Looking at Opportunities for the Next Crypto Bull Market,” Elliott Wave International Currency & Crypto Analyst Jason Soni touches on why – theoretically – this discrepancy exists. According to Soni, newer altcoins in their first cycle will see the deepest retracement. As cryptocurrencies mature, and go through more boom and bust cycles, retracements are less steep, like we’ve seen with Bitcoin and Ethereum. ETH 2018 versus ADA 2022 | ETHUSD on TradingView.com Bitcoin Sets The Standard For Bear Market Corrections In the video, Jason Soni used a comparison between many newer altcoins today following a similar trajectory and total drawdown as 2018 Ethereum. With each new cycle, new participants join and liquidity in each asset increases, reducing volatility over time and resulting in less and less in terms of max drawdown. This is perhaps the most visible with Bitcoin. Following Bitcoin’s first major bull market, the first ever crypto asset retraced by 96%. In the second bear market ever in crypto, BTC retraced by 86%. During the 2018 bear market, Bitcoin sank by a grand total of 84%. A softer landing yet might still be possible during this bear market. Related Reading: Solana Suffers Double-Digit Losses, Is There An End In Sight? Considering the severity of the drawdowns in most cryptocurrencies and the extreme negative sentiment, it could mean that the end of the bear market is near. At this point, Soni recommends avoiding “social media sentiment” at all costs and says to instead “focus on the patterns.” The video, “Looking at Opportunities for the Next Crypto Bull Market,” is offered exclusively through Elliott Wave International’s Crypto Trader’s Classroom, which delivers three new in-depth lessons each week from top Elliott Wave analysts. Many instructional videos include specific crypto charts and trading setups, using Elliott Wave Theory. You can learn more about Elliott Wave International’s Crypto Trader’s Classroom by clicking here. Follow @TonySpilotroBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice. Featured image from iStockPhoto, Charts from TradingView.com

获取加密通讯
阅读免责声明 : 此处提供的所有内容我们的网站,超链接网站,相关应用程序,论坛,博客,社交媒体帐户和其他平台(“网站”)仅供您提供一般信息,从第三方采购。 我们不对与我们的内容有任何形式的保证,包括但不限于准确性和更新性。 我们提供的内容中没有任何内容构成财务建议,法律建议或任何其他形式的建议,以满足您对任何目的的特定依赖。 任何使用或依赖我们的内容完全由您自行承担风险和自由裁量权。 在依赖它们之前,您应该进行自己的研究,审查,分析和验证我们的内容。 交易是一项高风险的活动,可能导致重大损失,因此请在做出任何决定之前咨询您的财务顾问。 我们网站上的任何内容均不构成招揽或要约