Bitcoin in the lower time frame appears to have lost its grip over the market as the price fails to keep up the uptrend. Despite multiple attempts to rebound to the next resistance levels, the asset is forming lower levels and sticking around them. The BTC price has dropped below the hourly 200-day MA levels and appears to be pretty tough to retrace. And hence in such a situation, some of the altcoins that are attempting to rise may experience a drawback.
The dominant crypto ever since ranged to its monthly high began forming multiple lower highs and lows. The altcoins that follow a Bitcoin are also experiencing a similar drain as the top 10 cryptos like Ethereum, Solana, Binance Coin, Polkadot, etc are plunging. Also, the DeFi space is correcting with a notable margin while NFT’s remain out of the crowd. And hence it can be said that the BTC generally dictates the markets as a whole. And if the speculations for the bottom levels are hovering then the alts may also bottom hard.
However, in the higher time frame, Bitcoin appears to be quite strong as some indicators point out towards the $70K target.
The analyst believes that despite the short time frame showcasing a downtrend, yet he is pretty bullish with the BTC price. The asset could consolidate around $56300 for a little more, maybe until January 2021. Post to which the price may jump high to hit $70K with greater bullish momentum.
Also, the yearly BTC exchange reserve is at a yearly low which always initiates a bull rally. And moreover, nearly 54.3% of all the coins in circulation haven’t moved for nearly one year. However, bears appear to be fully in control and looking for a movement towards $52K to $53K. Further, $50K may not be much distinct. And in such a scenario, ALTS paired with BTC may also chop a little.
No doubt the current phase cannot be termed as a bear market or bull market, yet it’s a new type of market framing its own movement. And hence Bitcoin may spike out of the consolidation soon to ignite the other altcoins too.