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. Although others see stability between $ 45,000 and $ 52,000.
Forecasts for Bitcoin
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 ”.
“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.”
At current prices, the ‘drawdown’ or correction from the last high is 35%, which is not bad at all. “However, this type of correction is our daily bread in bitcoin,” says José María Rodríguez, technical analyst at Bolsamanía.
“In terms of the medium term, the bullish structure is still intact and this is so because today the rising minimums and maximums occur again and again, and thus a downward trend is not built,” he explains since “figure back from We do not have the current corrective phase as of today ”. It explains that we have significant support at the December lows ($ 45,415 future) and above we have significant resistance at $ 52,200. Here the future has been braked, at the tick, on a couple of occasions: these are the highs of the session of December 7 and those of this Monday.
“If from here it were able to regain positions and beat said control zone, then a small return figure with bullish implications would be confirmed, with a first upside target at approx. $ 60,000 ”, says the expert.