At the moment, Bitcoin is outperforming the altcoin market, especially in December. Influence on the BTC market has recently risen to more than 70% in just over a year Mainly due to huge sales for XRP Last week.
Differences in Bitcoin price discovery
In 2018 and 2019, the difference between Bitcoin’s current price path and the previous bull cycle was that BTC began price discovery.
Simply put, Price discovery means that the value of an asset continues to reach an undefined territory. When Altcoins usually stop Enter Bitcoin price discovery Because BTC altcoin is gaining traction in the market.
As Bitcoin rises rapidly, it may also experience significant short-term declines. The problem for altcoins is that when the BTC rises, it falls behind the BTC. When BTC is retrieved, the altcoins usually see larger adjustments.
In the future, the Bitcoin market will be the opposite of Bitcoin. It is important to see the momentum of Ether availability. If a person appears in the near future, it will start the next altcoin season.
At the moment, Ita is still weak in competition with Bitcoin. The ETH / BTC pair has not shown signs of disintegration throughout high periods, including the daily schedule.
As such, the ideal scenario for the altcoin market is to break out the exit for altcoins to see the low output ETH / BTC pair and then see the new momentum.
Michael van de Poppe, an analyst at Cointelegraph Markets, points out that traders are afraid to buy altcoins because of the market economy. He emphasized himself Latest ETH Technology Analysis The ETH / BTC pair is still weak.
He states that Ether’s weekly chart is clear under the support of a BTC pair, which could be a weakness for altcoins. Poppe notes that the ETH / BTC pair should rise above 0.022 BTC to regain momentum.
“However, as long as the ETH stays above 0.221, the construction remains intact, which could lead to further disputes with Iran,” he added.
For ETH, retrieving the 0.022 level indicates strength and sustainability. Therefore, traders should look at this step first. If it fails to handle it, another area to watch out for is the 0.021 sats zone with $ 450.
So will altcoins ever be attractive?
In fact The so-called “altseason” did not appear even in 2111 Q1.
Bitcoin is currently at its highest 25% of 2017, while Ether is 50% below its 2017 ATH. https://t.co/IIuU9KEEs0
– Ansel Lindner (@AnselLindner) December 25, 2020
Some analysts say that Bitcoin will not return to the Altcoin market this time around, as it sees a rally led by institutional investors.
But some traders expect altcoins to be more attractive as Bitcoin rallies. An anonymous trader known as Salsa Tekila says the capital could return to altcoins if Bitcoin continues to rise. BTC reached its BTC peak in December and did historically well in the first quarter. He wrote:
“The higher the BTC dollar, the more attractive the altcoins become. The current BTC market cap is the 6.5X ETH market cap. The $ rotation factor is logical.