Bitcoin dominance has probably reached its peak, says Michaël van de Poppe. Now the season of the top 10 altcoins is approaching us.
Bitcoin ( BTC ) fell below $ 26,000 on December 29. The effects of the looming litigation between Ripple and the US securities regulator were felt across the crypto market.
gView show the BTC / USD pair hit a low of $ 25,830 over the course of Tuesday
The support at $ 27,000 did not hold overnight, triggering a retest of the lower levels. Now the $ 26,000 level becomes important. Over the weekend, Bitcoin hit all-time highs of $ 28,400 and quickly declined.
The XRP is the fourth largest cryptocurrency by market capitalization and the decision of the major US exchange Coinbase to suspend trading from next month left clear marks. The coin fell to $ 0.23. If the SEC’s lawsuit against the token is successful, XRP will be classified as an unlicensed security and trading in it will be illegal.
„There will be a range after which there will most likely be another breakout in 2021,“ summarized Cointelegraph Markets analyst Michaël van de Poppe in a video update on Monday about the short-term development of Bitcoin.
Analyst sees old season coming
Van de Poppe predicts that altcoins will be next big hit. Apart from the XRP, the market is already lively. Ether ( ETH ) climbed above $ 700 this week for the first time since May 2018 .
Another winner on Tuesday was Polkadot (DOT). It is currently the seventh largest token by market capitalization and has seen a 22.5 percent increase over the day. He made an increase of almost 34 percent over the week.
For Van de Poppe, the next „wave of impulses“ will probably bring Bitcoin to $ 40,000 or $ 50,000 in 2021. But „by then, altcoins will most likely do well“.
He also pointed to a likely peak in Bitcoin market cap dominance. It is almost 70 percent and will soon have to give way to altcoins. BTC dominance usually peaks in December. A notable comparison is 2017, when Bitcoin first attempted to break the $ 20,000 mark.