As the end of the year approaches, Bitcoin is preparing to launch into the new year with a surge in price, while altcoins remain relatively static. Market watch analysts report that Bitcoin is pushing towards the all-time high of 27,000 USD, from a low of 18,954 in the early part of December 2020. This considerable price jump has had many investors wondering if this trend will continue into 2021.
1. Bitcoin Bull Market Intensifies; Altcoins Fail to Follow
The Bitcoin bull market is continuing to accelerate, with prices looking to break the historic $15,000 level. This movement has been largely unmatched by the altcoins markets, which paints a stark contrast to the 2017 bull run. Many cryptos in the top-100 market cap rankings have seen losses, particularly those that are focused on privacy.
The majority of altcoins have reported losses over the past 30 days. The overall trend shows that altcoins are generally moving in the opposite direction of Bitcoin, bolstering its status as an industry leader. The top-20 altcoins have seen double-digit percentage losses, while major projects such as Litecoin and Ethereum have seen gains.
The Bitcoin bull run has picked up momentum over the past few weeks, with the cryptocurrency breaking through the $14,500 level. This signifies a major milestone for cryptocurrency markets, triggering an increase in speculative trading. It appears as though the crypto market is now entering a new era of speculation, as investors bet on news and announcements to drive the price of Bitcoin higher.
The altcoin market is in a tough spot, as most coins are not seeing any gains in the current market. The focus is very much on Bitcoin at this point in time, and investors are mainly engaging in speculative trading of digital assets. It remains to be seen whether altcoins will be able to make a comeback in the near future, or if Bitcoin will continue to dominate the cryptocurrency market.
2. Crypto Markets Steady as Bitcoin Sets Sights on New ATH
Cryptocurrency markets have remained relatively stable over the past 24 hours, with Bitcoin continuing to lead the way as the leading digital currency increases its dominance of the overall market. At the time of writing, the total market capitalization value is slightly above $1.4 trillion At the same time, Bitcoin has crept up to set a new all-time high, testing the $59,000 mark and confirming its prominence within the cryptocurrency sector.
Furthermore, other major cryptocurrencies have also seen an uptick over the past 24 hours, with Ethereum, Binance Coin, and Polkadot posting notable gains. Both Ethereum and Binance Coin saw double-digit gains as they both ended the day higher while Polkadot was up by a more conservative 5%. Over the past week’s trading, all three cryptos have seen growth as the wider sector shows signs of strength.
Turning to some of the smaller players, several altcoins have also seen an increase in value over the recent trading sessions. Notable gains have been made by Cardano, XRP, Litecoin, Uniswap, VeChain, and Bitcoin Cash, as investors look to diversify their portfolios away from BTC. Altcoins have seen an influx of investment in recent weeks, as traders search for the next big crypto.
As Bitcoin edges ever closer to the $60,000 mark, investors are eagerly watching the markets for the next major move. With the cryptocurrency sector finally coming into the mainstream, the potential for more dramatic price action in the coming days and weeks is significant.
- Bitcoin has set a new all-time high of $59,000 with potential in the coming days and weeks.
- Other major cryptocurrencies such as Ethereum, Binance Coin and Polkadot have seen gains.
- Smaller altcoins including Cardano, XRP, Litecoin, Uniswap, VeChain, and Bitcoin Cash have been gaining over the past week.
- The overall cryptocurrency market capitalization value is slightly above $1.4 trillion.
3. Analysts Forecast Further Upside for BTC, Bleak Outlook for Altcoins
Analysts from technical, fundamental and sentiment backgrounds are calling for Bitcoin (BTC) to continue its upside momentum, while bleaker forecasts are made for altcoins. Here is a look at the prominent perspectives.
Technical Analysis
BTC’s recent break above $12,000 on the charts has inspired strong bullish sentiment among technical analysts. Josh Rager has taken to Twitter to relay that “$13k is still the price floor” and expects BTC to “go back to $17,200 soon.” He further suggested that investors should “load up” if prices retrace back to the $12k area.
Fundamental Drivers
The fundamentals of Bitcoin have continued to improve over the quarter with strong institutional demand, over-the-counter players and traditional finance firms taking to Bitcoin. Santiment’s data has indicated increasing demand for BTC, which should continue to keep prices buoyant.
Sentiment Analysis
Sentiment analysis too has been encouraging for the BTC bulls. Recently, a number of crypto personalities including:
- Author and Bitcoin proponent, Jimmy Song.
- CEO of Shapeshift, Erik Voorhees.
- CIO of Unchained Capital, Parker Lewis.
have been openly vocal of their bullish views on Bitcoin.
Citing factors such as the halving, the increasing institutional demand and the overall optimism over the crypto asset, the bullishness of the thought leaders has been incredibly evident.
4. Is a Long-Term Bull Market in Sight for Bitcoin?
The Bitcoin market has been on a roller coaster ride in recent months. The digital currency’s price has fluctuated significantly, with some predicting a long-term bear market while others remain bullish. So, what does the future hold for Bitcoin?
- One camp of analysts suggests that Bitcoin has entered a long-term bear market, primarily due to the fact that its price has dropped significantly in recent months. They point to increasing regulatory scrutiny and the rises in trading fees as further signs of bearish sentiment.
- At the same time, there is another group of analysts that remain bullish on Bitcoin’s future. They believe that while the price has dropped significantly, that the long-term prospects for the currency are still strong. The increased level of interest in the digital currency, as well as the potential for mass adoption, are seen as indicators of potential growth.
What Does the Technical Picture Show?
The technical picture appears to show that Bitcoin is in a short-term bear market, with the price likely to stay at this lower level for some time. However, the long-term technical indicators suggest that Bitcoin could see a reversal in the near future, with a long-term bull market possible. Technical analysts point to the fact that Bitcoin’s price is still considerably higher than it was a year ago as a sign that a bull market is possible.
What Does the Fundamental Picture Show?
The fundamental picture of Bitcoin is much more difficult to predict. Factors such as regulatory scrutiny, technological advancements, and competition are all driving forces that could ultimately determine the future of the digital currency. While some remain bullish on Bitcoin’s future, others are not as optimistic, citing increasing levels of competition in the cryptocurrency market as a potential headwind.
Overall, it is difficult to predict the future of the Bitcoin market. However, the current technical and fundamental picture suggests that a long-term bull market may be in sight. Whether or not this will come to fruition only time will tell.
The charge at Bitcoin could be foreshadowing bullish slight gains in other digital coins. As market watchers are closely observing the prices of altcoins in relation to Bitcoin, the landscape is set to become the story for 2021’s crypto world. Who will gain the most and who will be left behind? The answer remains to be seen in the coming weeks.