Crypto Industry News:
The 2017 Altsseason was just an addition to the bitcoin bull race. As the BTC price rose to the new ATH, investors' exposure to altcoins also increased. This meant there wasn't much independence in the altcoin price rallies. Besides, after the short-term BTC peaks, there were increases in altcoins as investments flowed in and out faster and faster, including in altcoins. This seems to have changed for good in 2021.
Ethereum was the leader of the current altcoin gains mainly thanks to the introduction of ETH 2.0 and the price increase to $ 1,300. Most of the top ten altcoins, based on data from CoinMarketCap, recorded double-digit gains. Cryptocurrencies such as Stellar Lumens and Cardano posted double-digit gains, largely independent of bitcoin's rising prices.
In the last two quarters of 2020, the correlation of altcoins with bitcoin decreased, but most of the time the price increase continued. So it may seem that the current alt season is different from all we have seen so far.
In this season, we observed large price movements in the context of DeFi projects, with a high investment flow of 30.17 thousand. BTC. Bitcoin's dominance has risen to 68% and it is likely that it could rise to 70% or more in the future. The growing BTC dominance poses a threat to the flow of altcoin investments, and before that happens, the alt season could suddenly stop. The correlation of the best altcoins with bitcoin has decreased since the BTC price rose.
Technical Market Outlook:
The BTC/USD pair has made a new local low at the level of $30,567 after a 27% drop during the last couple of days. Nevertheless, the bulls have managed to retrace 50% of this wave down and currently the market is trading around the level of $36,241. The next target for bulls is seen at the level of 61% located at $37,577. Please notice, that any break below the long term trend line support located around the level of $29,000 will be the first confirmation the up trend is terminated.
Weekly Pivot Points:
WR3 - $57,405
WR2 - $50,005
WR1 - $44,297
Weekly Pivot - 36,611
WS1 - $31,317
WS2 - $23,111
WS3 - $17,774
Trading Recommendations:
Bitcoin made another ATH and bulls are in control of the market. The up trend continues and the next long term target for Bitcoin is seen at the level of $50,000, so any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $20,000 is clearly broken.