Tuesday, June 22, 2021

Traders flock into altcoins as Bitcoin price trades sideways


The bullish momentum seen all through the week has spilled over into the weekend as the vast majority of the top-100 tokens listed on CoinMarketCap are posting double-digit positive aspects. 

Bitcoin (BTC) coming into a short consolidation interval and the potential for a third round of stimulus checks for Americans are two potential causes for immediately’s bullish worth motion.

Day by day cryptocurrency market efficiency. Supply: Coin360

Whereas there are considerations concerning the latest large Bitcoin inflows into South Korean exchanges by BTC whales, fundamentals components like miner sentiment and lowering provide are preserving traders feeling comparatively optimistic about Bitcoin’s future worth prospects.

A rising variety of consultants have voiced their opinion that Bitcoin’s latest bullish surge is because of outflow from gold as the highest cryptocurrency is rapidly turning into the popular inflation hedge for the millennial generation.

Bitcoin finds a brand new vary in uncharted territory

Following the brand new all-time excessive worth in Bitcoin (BTC) of $41,940 on Jan 8, the highest cryptocurrency has entered what appears to be a short consolidation part as bulls try to push the value increased after confirming the $40,000 stage as assist.

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BTC/USDT 4-hour chart. Supply: TradingView.com

On the time of writing, BTC is up 1.53% on the day and buying and selling at $40,690 because the 24-hour buying and selling quantity has seen a 26% lower from the document excessive’s set on Jan 8.

Predicting what comes subsequent is a troublesome activity at these worth ranges as a result of absence of a worth ceiling. With regard to cost volatility, Chad Steinglass, the pinnacle of buying and selling at CrossTower urged that elevated volatility might be the norm till the market strikes “right into a extra steady setting of balanced flows and extra steady costs.”

In personal feedback to Cointelegraph, Steinglass stated:

“I believe we’re coming into a stage within the markets the place $1,000 intraday swings are just about going to be regular… Market maker liquidity relative to massive participant measurement is getting smaller and smaller. With market makers having diminished capability to warehouse threat relative to buying and selling circulation, I count on costs to maneuver fairly rapidly.”

Has a brand new altcoin season began?

As has been the case in earlier bull markets, an increase within the worth of Bitcoin is usually adopted by a consolidation part. Throughout this time, merchants are likely to shift their consideration towards altcoins and Bitcoin income shift into smaller cap cryptocurrencies.

In response to Jean Baptiste Pavageau, a companion at ExoAlpha, the present bullish momentum seen from Bitcoin will finally decelerate and at this juncture traders are more likely to pile into altcoins. Pavaageau instructed Cointelegraph:

“Certainly, we now have began to look at a traditional “wealth” distribution sample over the previous 2 weeks, the place Bitcoin traders wish to take their revenue and spend money on different blue-chip cash. Whereas the upside on Bitcoin is lowering, the altcoin market is turning into extra interesting for merchants and traders who’re on the lookout for massive returns. We count on to see Bitcoin dominance beginning to lower and the altcoin market booming over the following few weeks.”

BTC/USD each day chart. Supply: Coin360

Ether (ETH) worth continues to surge to new yearly highs as the value rallied 4.2% to $1,267. In the meantime, Bitcoin Money (BCH) and Bitcoin SV (BSV) are up 23.6% and 61% respectively.

Coming off every week full of positive developments for stablecoin projects, MakerDAO and its MKR token, which govern the event of the DAI stablecoin, has seen a rise of 45% over the previous 24-hours and at the moment trades for $1,530.

The general cryptocurrency market cap now stands at $1.1 trillion and Bitcoin’s dominance price is 69%.