Wednesday, January 19

Bitcoin is on track to close its worst month since March 2020


“With the emergence of omicron and the stagnation of the US economy, many macroeconomic funds that use bitcoin as this pro-cyclical hedge of inflation have decided to take profits throughout December,” said Brian Kelly, CEO and founder of BKCM.

“I don’t see any news behind this move, and I suspect the year-end squaring of accounts in poor market conditions overstated the range,” says Jeffrey Halley, analyst at Oanda. “There is nothing to suggest that bitcoin’s recent $ 45,000 to $ 52,000 is threatened,” he says, and “only a daily close above or below those levels suggests that a new directional move is in play.”

However, other experts are concerned that bitcoin has failed above $ 50,000 “because this shows weakness in the current uptrend,” says Naeem Aslam, head of analytics at Avatrade. “If the price continues to trade below this mark, it is likely that we will revisit the price level of $ 40,000,” he says. Halley, for his part, adds that “only a weekly close below this price will suggest that there is room for another major downward correction.”

While the altcoins with the highest market capitalization maintain a majority of losses. The declines of Solana, Cardano and XRP stand out with more than 3%.

What will happen to the BTC price

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 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, highlighting a bearish “fake” when the price of Bitcoin began to reverse.

But in addition, the dominance of Bitcoin in the market over the rest of ‘altcoins’ or alternative currencies fell below 40%.

bitcoin.jpg

Pixabay

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 tripled, from 21% in 2014 to close to 60% this month.

The dominance of the ethererum (ETH) market is still above 20%, at almost $ 500 billion. In the last year, ETH consolidation doubled from 10%.

In a tweet on December 24, cryptocurrency analyst “Altcoin Sherpa” claimed 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 was another great season for the crypto market, as the price of bitcoin (BTC) nearly doubled so far this year and the total crypto market capitalization rose to or just over $ 750 billion. to almost 3 trillion dollars.



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