BTC price came under pressure in yesterday’s trading after Ripple’s XRP tanked below $0.300 following a SEC lawsuit against Ripple. The BTCUSD pair traded below $23K but remained well above the $22K support.
Since then, the king coin has seen some mixed price action that saw it dip as low as $22,629 before it found support near the $22,350 level. At the time of this article’s writing, BTCUSD has reclaimed the $23K level to trade at $23,331.
BTCUSD Chart By TradingView
The bulls remain comfortable despite the sideways trading, as much of the price movement has primarily favoured the cryptocurrency’s buyers. Moreover, each decline sparked by rejections near the vital $24K level has been short-lived and followed by a serious uptick.
If BTC remains stable above the $23,320 and $23,500 support levels, there is a high possibility of an upside break in the coming sessions.
BTC Gains Strength as Altcoins Plunge
Interestingly, the BTC surge above $23K comes as the entire altcoin market flashes signs of weakness. Altcoins across the board are a sea of red, including LTC, XRP and ETH.
If this trend persists, where BTC continues to accumulate gains in the face of altcoin weakness, then the king coin could continue contributing to altcoins’ decline and potentially spark capitulation.
There’s a strong possibility that BTC dominance will stretch further until a capital rotation occurs from bitcoin to smaller altcoins.
That said, one respected trader expects the world’s leading crypto to experience some near-term downside before sparking a new rally.
Crypto trader George1 projects that the BTC price may first need to clear its range lows and consolidate in the lower $23K region before its next push higher.
“BTC: Thinking we retest some lower demand from here and sweep some lows. Let it range a little, reset premium and funding to have enough power for the next leg up,” the trader tweeted.
SEC Lawsuit Triggers XRP-Led Altcoin Apocalypse
The recent news that the SEC would pursue charges against Ripple and two of its top executives has sent XRP’s price tanking into oblivion.
The ripple effect from the impending SEC lawsuit has caused many top altcoins to trade in the red, as investors reconsider their altcoin holdings and de-risk into BTC and other alternative investments.
Wallet data indicates that whales are absorbing most of the dumped XRP coins. However, the damage to altcoins could be severe as investors witness how easily financial watchdogs can go after an arguably centralized cryptocurrency.
The SEC lawsuit has also temporarily managed to put a damper on the previously unstoppable Bitcoin price rally that saw it set a new all-time high.