TL;DR Breakdown
- Bitcoin continues to assert its dominance in the market.
- The leading crypto consolidated to $57K after an ATH of over $68K.
- The crypto market resets for a rally, holders can reach new ATH.
- Whales continue to record major accumulations
The cryptocurrency market is a mix of thousands of digital coins and tokens. These tokens make up a trillion-dollar industry, attracting investors and consumers from all over the globe. There are a number of popular names in the crypto market; these include Bitcoin, Ethereum, Solana, and so on. These big guns of the market lure people into the industry through their high-profit margins.
Among thousands of tokens, BTC tops the list as it is the oldest and the most valuable cryptocurrency globally. Bitcoin acts as a trendsetter in the highly competitive crypto market, and therefore, its price fluctuations are quite relevant to other coins and tokens. BTC started from a few cents, but it is now worth thousands of dollars in the sector.
Bitcoin’s dominance and price forecast
The dominance of Bitcoin is a known factor in the cryptocurrency market. Currently, its market dominance is over 42%. However, Bitcoin also faces ups and downs in its price trajectory. Bitcoin topped off in 2017 but remained silent in the following year. Similarly, Bitcoin faced a major dip at the start of 2021, yet it achieved its all-time high later this year.
People tend to speculate that Bitcoin’s bull circle is coming to an end as soon as it gets hit by sheer volatility. They also question its future as regulations and bans are imposed by countries, like China. However, Bitcoin has always managed to perform against all odds and expectations from time to time.
Is Bitcoin all set for a major price hike?
The largest cryptocurrency of the world started off the year with a storm as it managed to record a previous high of over $64,000 at the end of the first quarter. However, it fell off during the next quarter, and was held by the $30,000 support level for a long time. Moving on, Bitcoin again took off and posted a high of $68K in the start of November.
Upon this new high, experts were quite sure that BTC is all set to reach the six-digit figure. However, market correction pushed it back to the $55,000 range. At the time of writing, Bitcoin is valued a little over $57,000. Many experts predict that as soon as BTC recovers from this correction, a new high might be on the cards. With only a month left in this year, it is yet to be seen if the coin has the momentum to reach for the anticipated $100K mark.
The crypto market looks to rally
In the latest trading hours, the cryptocurrency market has indicated a recovery from the ongoing correction phase. In this correction phase, many altcoins shed a major portion of their previous gains. Coins like Solana and Shiba Inu fell from their all-time highs. Many coins had their values sliced in half. However, the coin holders stood firm on their ground as it was believed that this temporary dip would soon be over.
Bitcoin has also risen from the low of around $54,000 and several other tokens are making green candles. This shows that its time for several coins to go overboard and post major gains. In the meantime, the holders of various tokens will also be greatly rewarded. These holders were critical in supporting the coin in its difficult time.
The role of whales in the fluctuating prices
Crypto whales have always managed to be a key player in the crypto market. Several coin ecosystems have their share of whales that accumulate major holdings of the coin. When they move or dump these coins, the value of the crypto token is affected. The crypto whale ratios also indicate the potential price trajectory of the coin in the near future.
Over the last week, it was observed that large amounts of BTC coins were moved by Bitcoin whales. These transactions accounted for more than 90% of recent exchange deposits. Thus, it shows that BTC whales became more active sellers on different exchanges. In correlation with these large-volume actions Bitcoin has experienced volatile spikes with different intervals.
Even though it has happened several times, Bitcoin has not cleared major resistance levels with a force. Experts believe that the coin has to cross $60,000 so it can hold it as a support level. Once Bitcoin manages to do that then it can reverse the current downtrend. Recently, Bitcoin has shown more progress, thus, the next few days will paint a clearer image of the market.
Once Bitcoin manages to break the shackles, other altcoins can also manage to rise from their local points and record new highs in the market. Overall, a profiteering winter is expected ahead in the crypto market. Even though Bitcoin can post massive gains, it is now quite unlikely that it can touch $100K within 2021. However, the volatility of BTC and digital coins never ceases to amaze us with unpredictability.
