Bitcoin’s price drop over 2-3 September had a ripple effect across the rest of the crypto-market. Altcoins across the board depreciated, lending weight to the argument that despite all the talk about an altseason, the world’s largest cryptocurrency continues to share a strong correlation with the rest of the market. Interestingly, the correlation in question hasn’t been uniform as while Bitcoin has since recovered well, the same cannot be said for altcoins like Tezos, Cosmos, and Basic Attention Token.
Tezos, the cryptocurrency positioned 16th on CoinMarketCap’s charts, has had a decent 2020, with XTZ noting YTD gains of 81%. However, when compared to its performance in the latter half of 2019, it can be argued that Tezos has somewhat underwhelmed, especially since it has fallen considerably on the cryptocurrency ladder.
Like most alts, XTZ rose exponentially in the first half of August, before it came tumbling down. Bitcoin’s price fall over 2-3 September made this depreciation even worse. However, unlike Bitcoin, its recovery since hasn’t been uniform as Tezos fell by over 5% on the charts, after hiking by the same percentage, over the last 10 days.
XTZ’s technical indicators highlighted the market’s bearishness as while the Parabolic SAR’s dotted markers were well under the price candles, the MACD line was intertwined with the Signal line on the charts.
XTZ was in the news recently after a French investment bank chose Tezos for its experiment on Central Bank Digital Currency.
Cosmos, the cryptocurrency ranked 21st on the charts at press time, was one of the many alts to perform phenomenally well in the month of August. However, like the rest, ATOM’s price charts came crashing down, with Bitcoin’s depreciation down to $10,100 doing little to stabilize the prize of Cosmos.
Like Tezos, ATOM’s price charts showed that the cryptocurrency’s initial recovery wasn’t sustained, with the alt falling by over 9.5% after hiking by 13.5%.
Further, while the mouth of the Bollinger Bands was observed to be contracting in a sign of reducing volatility, the Awesome Oscillator highlighted the bearish momentum in the market.
Basic Attention Token [BAT]
Like the rest, Brave Browser’s native crypto BAT too fell on the charts on the back of its good performance in August and later, Bitcoin’s fall in early-September. Like the other alts, BAT’s recovery too didn’t last, with the cryptocurrency down by over 8% over the past week, at the time of writing.
The lack of sustained upward movement on the charts was highlighted by BAT’s indicators as while the Relative Strength Index was creeping close to the oversold zone, the Chaikin Money Flow was still well below zero, despite a recent uptick – a sign of capital outflows being greater than capital inflows.
BAT was in the news recently after PayBito announced that BAT will be one of the new crypto-assets to be listed on its platform.