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 good points.
Bitcoin (BTC) getting into a short consolidation interval and the opportunity of a 3rd spherical of stimulus checks for Americans are two attainable causes for right this moment’s bullish worth motion.
Day by day cryptocurrency market efficiency. Supply: Coin360
Whereas there are considerations in regards to the latest giant Bitcoin inflows into South Korean exchanges by BTC whales, fundamentals elements like miner sentiment and reducing provide are retaining 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 changing into the popular inflation hedge for the millennial era.
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 seems to be a short consolidation part as bulls try to push the worth larger after confirming the $40,000 degree as help.
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 report excessive’s set on Jan 8.
Predicting what comes subsequent is a tough activity at these worth ranges because of the absence of a worth ceiling. With reference to cost volatility, Chad Steinglass, the pinnacle of buying and selling at CrossTower steered that elevated volatility could possibly be the norm till the market strikes “right into a extra steady atmosphere of balanced flows and extra steady costs.”
In personal feedback to Cointelegraph, Steinglass mentioned:
“I feel we’re getting 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 dimension is getting smaller and smaller. With market makers having decreased capability to warehouse danger 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 commonly 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 line with Jean Baptiste Pavageau, a companion at ExoAlpha, the present bullish momentum seen from Bitcoin will ultimately decelerate and at this juncture traders are more likely to pile into altcoins. Pavaageau informed Cointelegraph:
“Certainly, we have now 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 reducing, the altcoin market is changing into extra interesting for merchants and traders who’re searching for giant returns. We count on to see Bitcoin dominance beginning to lower and the altcoin market booming over the following few weeks.”BTC/USD day by day chart. Supply: Coin360
Ether (ETH) worth continues to surge to new yearly highs as the worth 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 per week stuffed with optimistic developments for stablecoin initiatives, 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 present trades for $1,530.
The general cryptocurrency market cap now stands at $1.1 trillion and Bitcoin’s dominance price is 69%.