Bitcoin Sparks Altcoin Redemption Rally as BCH, BSV, LTC Surge
January 14, 2020 @ 21:24 UTC
Bitcoin’s technical breakout intensified on Tuesday, serving as a primary catalyst for altcoins to extend their rally. The resulting rally pushed the total cryptocurrency market cap north of $233 billion, the highest in two months.
The bitcoin price catapulted to an intraday peak of $8,745.24 on Bitstamp, the highest since Nov. 14. The largest cryptocurrency by market cap was last seen trading just above $8,700, having gained 7.3%. Bitcoin faces psychological resistance at $9,000 but the primary hurdle is $9,100, which represents the 200-day moving average on the daily chart. Momentum is clearly on the side of the bulls, with the relative strength index (RSI) fast approaching 70.
At current values, bitcoin’s market capitalization stands at $157.5 billion but its share of the overall market has declined a few percentage points to 67.7%. Bitcoin’s gravitational pull on the broader cryptocurrency market was on full display Tuesday, as altcoins and tokens extended their recent string of gains. The breakout was led by Bitcoin SV (BSV), which surged 46.3% to $238.44. Bitcoin cash (BCH) climbed 22.9% to $323.557. Litecoin (LTC) and EOS each rose double digits.
Ethereum (ETH), the number two cryptocurrency, rallied 8.3% to $155.19. XRP added 6% to trade at $0.2240. Many altcoins are correcting higher after a brutal multi-year slump shaved more than 90% off their values. The first major recovery attempt came in the first half of 2018 but proved unsustainable. Bitcoin’s latest recovery and the resulting altcoin surge have caused some analysts to declare the beginning of a new accumulation phase.