- WIF’s market structure remained bullish despite the current market dump
- Despite BTC’s bearish market structure, it retained its value better than WIF
As April’s losses extended into May, not all crypto assets managed the market dump well. This wasn’t helped by the fact that Bitcoin [BTC] fell on the charts below the price range of $60.8k and $72.7k over a two-month period.
As expected, BTC’s decline below its range put more pressure on the market’s altcoins. Some altcoins even lose more than 30% or 40% of their value. However, some defied these trends and continued to stick to their bullish market structures.
Crypto analyst Ansem has chosen memecoin dog hat [WIF] as an outlier during the market decline. He even reiterated that WIF maintained its bullish market structure, unlike BTC.
“On the left is dogwifhat, the leading meme for this cycle, on the right is bitcoin. WWhich one held the bullish market structure better after this pullback?”
Source: X/Ansem
For the unfamiliar, the market structure is a snapshot of the token’s price action on the charts, and it can be bullish or bearish.
Based on the chart, WIF has been consolidating above the $2 level since March and increased selling pressure did not push WIF below support. WIF’s price action was above key support and hovering above the major moving averages (colored lines). Since the WIF is still in a general uptrend, the market structure of WIF is considered bullish.
For the BTC chart, the price fell below the two-month support, around $60,000, and was below one of the moving averages. Based on technical analysis (TA), this meant that BTC broke its market structure and turned bearish.
So from a TA perspective, specifically based on market structure, WIF has weathered the market dump better than BTC.
Bitcoin held its value better than WIF
However, when tracing from all-time highs to current levels, WIF lost twice as much value compared to BTC. Notably, WIF hit an all-time high of $4.86, but was trading at $2.75 at the time of writing, translating into a 44% decline. On the contrary, based on press time value of over $58,000, BTC fell around 20% from the all-time high of $73.7,000.
WIF fell twice as much against BTC, based on the percentage of the value that fell from record highs.
That said, WIF’s bullish market structure means that despite the aforementioned dump, it could recover more quickly if the market improves.