The events of the last two days revealed just how closely the crypto market tracks Bitcoin.
After last week’s price shocks, the tanking of Bitcoin triggered mayhem.
But there was something else that happened behind the scenes that caught the attention of analysts.
The dump down among altcoins was intense.
While Bitcoin dropped to as low as $29k at the depth of last week’s liquidation, the correction triggered capital flight.
Bitcoin Dominance Rising
Amid all this, Bitcoin’s dominance, like it has panned out in previous sessions, rose.
As of writing on May 25, trackers reveal that the coin’s dominance stands at 47 percent.
It had fallen to as low as 42 percent. There were hints that the rise of altcoins, especially Ethereum and other top 10 smart contracting platforms like Polkadot and Cardano, could carve out huge market share, clipping Bitcoin’s dominance.
Instead, the bear shattering reinforced Bitcoin as a preferred store of value and a primary base currency, a refuge in times of crypto doldrums.
BTC/USD Prices Stabilizing
At present, prices have recovered. Bitcoin is now trading at around $37k.
Trackers reveal that it is outperforming ETH, adding 12 percent but at the same time trailing the greenback, shedding 14 percent.
Meanwhile, from a participation perspective, the average trading volume over the last 24 hours fell 22 percent to around $63.5 billion.
Regardless, BTC/USD prices found support from the $30k level, reinvigorating buyers whose confidence had been dented last week.
The question is: Which way Bitcoin? Path to $100k or a painful retest of $20k?
S2F Model Predicts BTC/USD to Bottom-Up and Reach $100k
PlanB, a Bitcoin permabulls, thinks prices didn’t peak at $60k. Instead, there is so much upside for the coin, especially once events set for the next few years are factored in.
Just to be clear: I do not think $60K was the top, far from it, because I do not see the kind of transactions that normally happen after an ATH (red dots). In fact, I think we are just a couple of months out of the bear market (blue dots). And yes, this on-chain view fits S2F(X). pic.twitter.com/omLh23MsrX
— PlanB (@100trillionUSD) May 18, 2021
Earlier on, the crypto influencer had said BTC would surge to over $100k by the end of the year. He even set out a poll:
— PlanB (@100trillionUSD) May 17, 2021
Bitcoin is ready for a 10X Rally to over $380k
It is along the same thoughts shared by btcinvests on Trading View.
The technical analyst makes a comparison between the current price action and those of 2019.
The only difference between then and now is that BTC is a year after halving in May 2020.
Since the BTC/USD price now finds support at the Daily VMA200—a volume moving average—as it did in 2019, Bitcoin prices can surge by a factor of ten to over $380k in the upcoming sessions.
Fear: BTC/USD may crash to $20k in a retest
Bullish from PlanB and btcinvests;
Not for Excavo, who thinks the Bitcoin price may rise temporarily before crashing to $20k (a retest) in a bear trend continuation pattern.
In the immediate term, there are strong reaction zones at around $42k. This level coincides with January 2021 highs.
If this level is broken, then the BTC/USD price may surge to over $50k to continue Q1 2021 gains.
On the flip side, a short squeeze may result, causing what Excavo says would be one of the largest long liquidations in the aftermath of the bull trap at around $42k.
Disclaimer: Opinions expressed are not investment advice. Do your research.
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