Bitcoin crash will bring heightened uncertainty to the altcoin market

[Coinpedia Fintech News]

Following weeks of stability around $27,000, Bitcoin's price recently encountered a surge in bearish sentiment, leading to a liquidation of over $111 million within a 24-hour period. This negative sentiment spread across the entire cryptocurrency market after the United States Securities and Exchange Commission (SEC) filed a lawsuit against Binance, the top cryptocurrency exchange in terms of daily trading volume. The SEC's allegations revolve around Binance's violation of US securities laws by listing unregistered security assets like Cardano (ADA), Polygon (MATIC), and SAND, among others.

However, from a technical analysis perspective, the recent dip in Bitcoin's price was not entirely unexpected when examining higher time frames. Prior to the dip, Bitcoin had already exhibited several indicators signalling an imminent drop. Nevertheless, there is a lack of significant fundamental factors supporting the bears in their downward trend. Notably, well-known market trader Jason Pizzino believes that the entire altcoin industry will continue to experience losses despite the decline in Bitcoin's dominance from its recent highs of around 48 percent.