Boring ‘Bitcoin’ and Altcoin Price Action By Q1 of 2021
Traders expect this decline for bitcoin and altcoins, especially as BTC’s head rate begins to climb higher.
The value of bitcoin (BTC) has been stagnant for weeks but traders currently expect a slower fourth quarter for top-ranked digital currency. This decline in 2018 and 2019 closed the web negative, injecting a small amount of pessimistic sentiment into the market. Within the near term, this drawback from the bitcoin price may reduce the cost of the coin to any dump. Currently many analysts and tech associates closely watch the boom within the Bitcoin dominance index to warn against a pull in the overall coin market of altcoins.
Have the worst coins already been passed for?
As earlier reported, in the previous period the altcoins and decentralized finance tokens (DeFi) were slumped by 30% and 60%. The price of bitcoin once rose from $9,981 to $11,179 from September 9 to September 19 and during this time, it seems that a take-profit rally was taking place. Analysts believe that bitcoin and stable coins have increased gains from upper coins and DeFI’s.
As such, while bitcoin saw a powerful rise, DeFI tokens declined and altcoins were in a highly stable decline.
As bitcoin was at $11,100 and began to decline from a major resistance level. Within the last fifteen days, the BTC slipped to around 6%, settling slightly on top of $10,500. According to some analysts, the current recession is unlikely to end any time soon.
A tweet from one of the analysts pointed out that crypto markets typically see ‘boring and corrective’ phases during this decline. He predicted that BTC dominance could run upside and this could be good for the alt season in Q1 of 2021.
An anonymous trader, called “Loma” echoes the same sentiment. He said that the last time the coins were reduced to this level, BTC slumped very hard in a short period of time. This time, maximum coins are decreasing while BTC and Ether are comparatively stable on top of their individual support levels. The trader noted: Sales of altcoin are still going on, while Bitcoin is barely moving.
Is there a relief rally on the cards?
Since the beginning of October, a number of negative events have been faced by the cryptocurrency market that could weigh heavily on the minds of investors.
Some traders have suggested that short squeeze could be on the cards as after major events investors expect an increase in volatility.
All in all, traders saw a previously boring quarter of Bitcoin and altcoins, but last month’s massive sell-off could eventually lead to a major relief meeting. One could also be a part of this relief rally. All you need is an account for trading and the registration process is very simple if you use Bitdenex, the process of trading on this platform is handled extremely intuitively. If you don’t have a Bitdenex account yet? You can start here.