What are the forecasts for Bitcoin and Altcoins for the next few months?

What are the forecasts for Bitcoin and Altcoins for the next few months? To answer that question, Binance shared an analysis with Cointelegraph in Spanish.

As they pointed out, after six months on the rise, Bitcoin has taken a well-deserved break from its growth in green candles to offset the initial price consolidation in April 2021

Last October, Bitcoin was trading at $ 10,300, and from then on, the valuation of the golden digital asset has been parabolic, closing at $ 58,700 in late March of this year.

What are the forecasts for Bitcoin and Altcoins for the next few months?
What are the forecasts for Bitcoin and Altcoins for the next few months?

“The fact that the price of Bitcoin has stabilized is a good indicator for traditional investors, as they fear the volatility of cryptocurrencies most. At the same time, it piques the interest of investors. Risk for alternatives to Bitcoin Those looking for a safe investment, can turn to Bitcoin, while those willing to take risky positions can bet on other currencies for exceptional returns, “said Maximiliano Hinz, Binance’s Latam Operations Director.
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BTCUSDT in the monthly period (source: TradingView)

The appreciation of more than 460% in six months between October and March opened the eyes of major investors such as Elon Musk and Michel Saylor as well as Microstrategy. We can also call PayPal and its plan that from November 2020 its users will be able to buy, hold and sell cryptocurrencies like Bitcoin via its platform. The snowball effect was felt immediately. When large and recognized investors endorse an asset, the media repeats and promotes the FOMO (Fear of Missing Out) from small (retailers) and other investors who enjoy some anonymity.

The forecasts for the growth of the cryptocurrency industry seem very positive.

What about altcoins?

At the time of this writing Bitcoin’s dominance over cryptocurrencies is 45.48 points, i.e. 54.5% of the cryptocurrency market is not Bitcoin. The technical analysis shows that the 46 point support did not resist the strong appreciation of altcoins like Ethereum and Cardano on the weekend of May 8th and 9th.

The next support is at 41 points, which in the case of a severely oversold RSI (Relative Strength Index) would mean that the likelihood of rejection and recovery in this area is very likely.

In this case, Bitcoin would perform better than the rest of the cryptocurrencies. We have to remember that this would not necessarily mean that the Altcoins will fall in price (USD), but that they will fall against the Bitcoin pair.

Bitcoin dominance in weekly periods. (Source: trade view)

One of the clues that would allow us to uphold this hypothesis is the projections that result from the market capitalization (overall valuation) of the cryptocurrencies that do not include the valuation of Bitcoin.

In this graph we can see that the valuation of cryptocurrencies recently exceeded the January 2018 level. In the previous cycle, between July 2016 and January 2018, there was a significant boom in the valuation of this market, which rose 217,156%. .

If we only had 10% of that increase in current valuation, we should think about a 21.715% increase. Today the increase is in the order of 180%. Before we jump off your chair and use all of your savings to buy and get into FOMO, we need to rationally analyze this market and know that while history repeats itself, it doesn’t necessarily repeat itself in the same way.

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Market capital of all cryptocurrencies except Bitcoin. (Source: trade view)

On a technical level, we can use the Fibonacci extension to estimate capital market growth for all cryptocurrencies except Bitcoin. With the Fibonacci extension, we can predict the most likely levels at which seasoned traders would profit.

As we can see we are at an important level that may indicate a possible brief consolidation in this area or the possibility of moving to the next level.

Market capital of all cryptocurrencies except Bitcoin. (Source: trade view)

One of the reasons the cryptocurrency market has grown so much, with the exception of Bitcoin, is the growth of Ethereum, which rose from $ 1,000 to $ 4,000 in the last few months in the first few days of May

As with Bitcoin, it is very likely that a consolidation phase of this price can be observed, which would usually allow the communication of ships to supply the cryptocurrencies with less capital. When will that happen? The Total2 / ETH pair gives us information about this possible cycle. In fact, we observe that the trend is changing in favor of the other cryptocurrencies compared to Ethereum. On this weekly chart, the EMA trend is about to transition to the upside, which would mean that non-Ethereum cryptocurrencies would outperform Ethereum.

Market capital of all cryptocurrencies except Bitcoin versus Ethereum. (Source: trade view)

According to Binance, a new season with altcoins is already approaching. The decline in the dominance of Ethereum over the rest of the altcoins returned to the lows of July 2020, allowing new projects to benefit.

Important disclaimer

Cointelegraph is a financial information publisher and not an investment advisor. We do not offer any personalized or individual investment advice. Cryptocurrencies are volatile investments and carry significant risk, including the risk of permanent loss and total loss. Past performance is not an indication of future results. Illustrations and graphics are correct at the time of writing or as otherwise stated. Tested strategies are not recommendations. Check with your financial advisor and / or do your research before making any financial decisions. Full terms and conditions.

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