The cryptocurrency with the largest market capitalization, however, started the week lower, after hitting US $ 51,515.6, its highest level since December 7. Meanwhile, Ethereum also fell to around $ 3,800.
Bitcoin had a Christmas bullish rally, but this week the gains faded. Investors and gurus expected it to surpass $ 52,200 as a new milestone from which to take off again above $ 60,000.
Analysts now believe it can continue the decline to at least $ 44,000.
According to analyst Rekt Capital, Bitcoin’s price action is similar to a scenario that occurred in May “in which Bitcoin is experiencing a multi-week consolidation between the two bull market EMAs,” and the price could soon return to the level. of u $ s44,000.
Pseudonymous Twitter user and analyst “Don Alt” offered suggestions on what traders should watch out for in the coming days and weeks, posting a chart showing shows that Bitcoin is in a “pretty clean downtrend, for now”.
Options trader and pseudonymous Twitter user John Wick offered insight into the technical reasons for the year-end correction for the BTC price, who posted the following graphic highlighting a bearish “fake” when Bitcoin price started. to be reversed.
But in addition, the dominance of Bitcoin in the market over the rest of ‘altcoins’ or alternative currencies has fallen below 40%.
The level of dominance is followed by investors and observers of the cryptocurrency market as an indicator of what is called the ‘altcoin’ season or market periods in which the rest of the tokens outperform the most traded of digital currencies. .
In fact, a TradingPlatforms report on December 27, cited by ‘CoinTelegraph’, claims that the data may signal the start of this alternative token season. In the past seven years, the dominance of the altcoin market has tripled, from 21% in 2014 to close to 60% this month.
Market dominance for ethererum (ETH) is still above 20%, at nearly $ 500 billion. In the last year, ETH market dominance has doubled from 10%.
In a tweet on December 24, cryptocurrency analyst “Altcoin Sherpa” stated that the “altcoin season” has already been underway for a year. On the other hand, bitcoin skeptic Peter Schiff also commented in a Twitter post. that the proliferation of tokens is robbing bitcoin of its “competitive advantage.”
“With over 16,000 alternative cryptocurrencies to choose from, bitcoin’s market dominance is now below 40% for the first time since June 2018. With an unlimited supply of easily created cryptocurrencies with virtually identical properties, #bitcoin is losing out. its competitive advantage of being the first ”.
Markets cryptocurrencies They were extremely volatile in 2021, with Bitcoin falling approximately 56% between April and June and then reaching its all-time high in November, then to go down again due to concerns about Ómicron, among other factors.
But nevertheless, 2021 was a historic year for cryptocurrencies, overall, “with the ‘blockchain’ space attracting a significant amount of capital thanks to the launch of exchange-traded funds (ETFs) and increased awareness among investors“said analyst Naeem Aslam.
The year has been another great season for the crypto market, as the price of bitcoin (BTC) has nearly doubled so far this year and the total cryptocurrency market capitalization has risen from just over $ 750 billion. to almost 3 trillion dollars.