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As Bitcoin’s Rally Accelerates, Analysts Expect Altcoins to Get Crushed

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  • Bitcoin’s price has remained stable above $12,000 following the strong uptrend it was able to post yesterday
  • The cryptocurrency is now consolidating as bulls attempt to garner greater support
  • It also appears that BTC is trying to test and confirm $12,000 as support. Any dip below this level in the near-term will be grave
  • The stable uptrend seen by BTC in recent weeks has provided altcoins with an ideal backdrop to rally against
  • One analyst, however, is noting that he now expects Bitcoin’s rally to start accelerating – and this could come about at the expense of altcoins

It has been a wild past few weeks for Bitcoin and the entire cryptocurrency market. While BTC has been slowly grinding higher, many altcoins have been seeing parabolic returns.

This type of market-wide strength has not been seen since 2017, and it feels far more sustainable than the short and sharp uptrend seen during the summer of 2019.

Analysts are now widely noting that further upside could be imminent for Bitcoin in the near-term, despite its inability to push past $12,400.

This next leg higher, however, may come about at the expense of altcoins – according to one popular analyst.

He believes that altcoins will start ceding some of their gains to the benchmark cryptocurrency as it sees an uptrend fueled by a rebound in its market dominance.

Bitcoin Shows Signs of Strength as Bulls Support It Above $12,000

For the past couple of weeks, Bitcoin had been struggling to break above $12,000. This level was shattered by bulls yesterday in an incredibly sharp movement that led it to highs of $12,400.

At the time of writing, Bitcoin is trading down roughly 1% at its current price of $12,200. Its momentum following yesterday’s upsurge has slowed significantly.

For it to remain in the control of bulls, it is imperative that the cryptocurrency holds above $12,000 for an extended period, and even confirms this level as support.

Analyst: BTC to See Further Gains Fueled by Rebound in Market Dominance

Most investors have been primarily focused on small and mid-cap altcoins in recent weeks, which have been stealing the glory from Bitcoin.

One analyst is now noting that he expects these tokens to plunge in the near-term as BTC reclaims its market dominance and rallies higher.

“Got the leg up on majors and took big profits while moving SL up on what’s left. Going to be adding to my Bitcoin position (spot & margin). I said it last month and I’m gonna say it this month too: BTC acceleration is coming and you don’t want to be in ALTs during that time.”

Whether or not this possibility comes to fruition may depend largely on whether or not Bitcoin can defend against a decline beneath $12,000.

Featured image from Unsplash.

Pricing data via TradingView.





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Bitcoin

Bitcoin price bounces to $33K but analysts say ‘it’s too early’ to call a bottom

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Cryptocurrency investors found little reprieve on June 22 as the price of Bitcoin (BTC) fell below $30,000 for the first time since January, sparking panic among less experienced market participants who have yet to experience a full market cycle. 

While Bitcoin has been under increasing pressure from multiple sources since early May, the most recent bout of selling has been largely attributed to capitulation by China-based miners who have been forced to abruptly shut down their operations.

Data from Cointelegraph Markets Pro and TradingView shows that after dropping to $28,800, Bitcoin price bounced back above the $30,000 level and currently trades for $32,600.

BTC/USDT 4-hour chart. Source: TradingView

The strong bounce came after comments from Brian Nelson, the current nominee for Under Secretary of the Department of the Treasury’s division on terrorism and financial crimes. Nelson said he was going to make the implementation of new regulations around cryptocurrency a priority if he is confirmed.

Miner crackdown in China sparks market turmoil

The pressures put on Bitcoin and the overall cryptocurrency market was highlighted by Élie Le Rest, partner at digital asset management firm ExoAlpha. Le Rest told Cointelegraph that “Chinese market participants have been massively selling during the past month.”

Le Rest also pointed to the “Grayscale unlocking schedule leading to more selling pressure,” resulting in some panic selling by the less experienced traders in the market.

Le Rest said,

“With newcomers in the crypto market seeing their profit and capital getting wipe out by selling waves, newcomers are taking their loss as they can’t stomach this much negative volatility anymore.”

Due to these pressures, Le Rest believes that the market could range in the “lower tranches of $25,000 to $35,000” in July, with the low volume usually seen in August having the potential to “accelerate this downside trend or build the upside trend.”

The upside case for today’s move was provided by David Lifchitz, managing partner and chief investment officer of ExoAlpha, who stated that the activity seen in the market on June 22 “seems to have drawn the line in the sand for BTC at $29,000 and Ether (ETH) at $1,700, given the swift bounce.”

Related: Bad call? Bitfinex bears closed a block of Bitcoin shorts before the drop below $32K

That being said, Lifchitz warns against throwing caution to the wind as the volatile nature of the crypto market makes picking a bottom notoriously challenging.

Lifchitz said:

“However, it’s too early to tell if this is “the” bottom or just a temporary floor before more downside. The lack of any upside catalyst (besides some contrarian oversold metrics) remains the biggest hurdle for cryptos to bounce back… Paging Mr.Musk, paging Mr.Musk.”

Altcoins see double-digit losses

The altcoin market followed Bitcoin’s lead on June 22 with a majority of tokens seeing double-digit losses as traders ran for the safety of stablecoins.

Daily cryptocurrency market performance. Source: Coin360

The price of Ether managed to rebound along with the price of BTC, helping erase a 15% correction and send the price back above $1,900.

Two tokens that managed to rise above the market turmoil and see positive gains for the day were Livepeer (LPT), which posted a 15% gain and Celo (CELO), which saw its price increase by 9%.

The overall cryptocurrency market cap now stands at $1.303 trillion and Bitcoin’s dominance rate is 47.1%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.