The Bitcoin price has risen considerably in the last few days and is leaving a possible correction behind for the time being. During this short-term uptrend, the Bitcoin course has also brought some Altcoins out of nirvana. The winners of the last days were mainly the various Bitcoin Forks like Bitcoin Cash and Bitcoin SV.
But also other crypto currencies like Dash and Ethereum Classic could hold their own. It was partly frightening that apparently out of nowhere some of the mentioned Altcoins were able to gain more than 300% and that within a few days. How sustainable is this little Altcoin pump and what about the Bitcoin price?
Altcoins outperform Bitcoin price
The Bitcoin course situation before the turn of the year was rather bearish. Many have suspected that the Bitcoin course has not yet reached its new bottom and will soon move towards USD 5,000. There were many traders who bet on a falling course. The majority were convinced that things are going downhill again. But as so often, everything came differently. The Bitcoin price briefly exploded upwards by more than 10% and thus liquidated several million USD in short positions. Currently the BTC price is struggling at the 9,000 USD mark.
Normally, when the Bitcoin price pumps up, many traders flee the Altcoin positions and buy BTC. This still causes some Altcoins in USD to rise, as they are dependent on the Bitcoin price and are dragged along, but compared to BTC, some of them suffer severe losses. But this time it went a bit different. Some Altcoins could not only hold their exchange rate to BTC, but even outperform BTC. The Bitcoin dominance has fallen from about 70% to 67.5%. But how sustainable was this Altcoin pump? Are we facing an Altcoin Rally?
Old coins before a new rally or just blanks?
In the past, an Altcoin Rally started when the older projects suddenly pumped out of nowhere. Similar to what we have seen in the last few days. It is at least an indication that the time of the Altcoins is far from over. We have recently looked at the fact that more than 99% of Bitcoin SV’s trading volume can be attributed to fake volume and wash trading. The situation is similar with some of the Altcoins mentioned. The trading volume is so low that a pump of more than 100% does not need that much money. Correspondingly, it could be similarly in the other direction in the next few days.
But what sense would a manipulation of the Altcoin prices make? This question can be answered relatively quickly and easily. Many stock exchanges now offer derivatives for Altcoins, where it is possible to trade with levers up to 100x on both rising and falling prices. In the run-up to the trade, the manipulators take large future positions in the Altcoins with a high degree of leverage and then manipulate the price. This can hardly be proven, but the assumption is that it will happen in this or a similar way.
Although there have been some attempts to explain the recent price pump of the Altcoins, in the end it remains pure speculation. If you still want to learn more about altcoin trading, visit LUCKY COINER.
We have not found any well-founded reasons that would justify such a sharp price increase. So we have to assume some manipulation or a game of whales. Another indication of manipulation is that hardly any new retail investors have entered the market. Thus, prices have not been pumped through fresh money, but simply shifted by the big players. In the end, as the past shows us, everything flows back into Bitcoin. Because that is currently the basis in Crypto Space and a possible Store of Value in the future.
Bitcoin course still on the green
So what is the current Bitcoin price situation? There is no question that Bitcoin is becoming more and more mainstream and is also attracting great interest among institutional investors. In addition, one of the most important events is coming up in a few months – Bitcoin Halving. Although there is already talk that the halving is already priced in, we do not know. Regardless of this, BTC Halving remains one of the most important events that will have a long-term impact on the Bitcoin price. The current fundamentals of Bitcoin also speak for a bullish trend.
- The big Altcoins Rally is only expected by many experts when the Bitcoin course has reached a new all-time high. So as soon as the Bitcoin course reaches a trend reversal and we move again a new bear market.
- Only then will traders try to make profits with Altcoins. In addition, a new all-time high could once again bring a wave of new investors into the market, who are blinded by the strong marketing of some Altcoin projects and seemingly buy a cheap “Bitcoin” alternative. At least that is how it looked after the bull run in 2017.
- So it remains exciting to see how the Bitcoin price will perform in the coming weeks and months, whether some Altcoins can make another rally and how the BTC price will react to the approaching halving. 2020 will definitely be an exciting year for the whole Crypto Space.