Why do traders expect boring price movements for Bitcoin and Altcoins until 2021?

The price of Bitcoin (BTC) stagnated in one area for several weeks. However, traders generally expect a slow fourth quarter for the leading digital asset in the market.

Quarterly Bitcoin Return (%). Source: Skew.com

Quarterly Bitcoin Earnings (%). Source: Skew.com

Why do traders expect boring price movements for Bitcoin and Altcoins until 2021?
Why do traders expect boring price movements for Bitcoin and Altcoins until 2021?

In 2018 and 2019 the fourth quarter ended negatively and brought a somewhat bearish sentiment into the market. Short-term, boring fourth quarter with Bitcoin price dropping This could cause altcoin prices to drop further.

At this moment, Several technical analysts are closely monitoring the recovery of the Bitcoin Dominance Index and warning of a decline in the altcoin market.

Is the worst over for altcoins?

As Cointelegraph reported, in the past two weeks Most of the smaller Altcoins and DeFi (Decentral Finance) tokens fell between 30% and 60%.

The altcoin crash worsened when bitcoin rose from $ 9,981 to $ 11,179 on September 9-19. At that time, there seemed to have been a big step towards withdrawing profits. Analysts believe the profits on Altcoins and DeFi have been converted into Bitcoin and Stablecoins.

While Bitcoin saw a strong upward trend, DeFi tokens were falling and altcoins were steadily falling.

The altcoin sell-off came when Bitcoin began to fall after rejection of a key resistance level of $ 11,100. In the past 15 days, BTC has fallen nearly 6% and has stabilized slightly above $ 10,500.

Daily chart of the BTC / USDT pair. Source: TradingView.com

Daily chart of the BTC / USDT pair. Source: TradingView.com

according to the Cointelegraph employee, Michael van de Poppe, the current slump is unlikely to end anytime soon.

In one Tweet, van de Poppe published the following chart and explained that the cryptocurrency markets usually experience “boring and corrective” phases in the fourth quarter. Traders said that historically, Ether falls to the ground in December and moves in the next quarter.

Daily chart of the BTC / USDT pair. Source: TradingView.com

Daily chart of the BTC / USDT pair. Source: TradingView.com

Van de Poppe predicted that “BTC dominance will increase to have an old season in the first quarter of 2021.”

A pseudonymous trader known as “Loma” expressed a similar feeling. He said the last time altcoins went down so much BTC saw a huge decline in a short period of time.

On this occasion, Altcoins are falling, while BTC and Ether are relatively stable above their respective support levels. The dealer he showed::

“ALTs are falling, while Bitcoin is barely moving. The last time I saw this, Bitcoin painted a big candle. “

Is there a recovery movement among the placeholders?

Since the beginning of October, the cryptocurrency market has been exposed to a number of negative events that could affect investor sentiment.

On September 26th, the KuCoin exchange suffered a hack of $ 281 million, and while the price of Bitcoin was not affected by the news, it could prevent bullish momentum from being created. This was followed by The US Commodity Futures Trading Commission (CFTC) filed charges against BitMEX on October 1 for violating the Banking Secrecy Act.

Then on October 2nd The President of the United States, Donald Trump, has tested positive for COVID-19. which caused a stir in the traditional markets and in the crypto market.

After these important events Investors expect higher volatility and some traders suggest that a small contraction might occur.

Another popular Twitter retailer called “Byzantine General” said it was the “perfect” time for a little contraction, as if it deterred weak hands. The dealer also indicated that in his opinion There is a lot of marginalized capital in the cryptocurrency market. He said::

“With all the uncertainty that exists right now, especially with cryptocurrencies, it would be the perfect time to explode and leave all these weak hands behind. By the way, the SSR is still historically low, which means a lot of gunpowder is on the verge. “

In general, Traders expect a boring quarter for Bitcoin and Altcoins, but last month’s intense sell-off could ultimately lead to a rebound.

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