Show of strength – bulls want to hold Bitcoin above 40,000 US dollars, altcoins are already giving way
Bitcoin traders are trying to find a foothold above the US$40,000 level, while altcoins are losing again.
Altcoins‘ gains are facing new selling pressure as market leader Bitcoin (BTC) has faltered significantly after surging to a new record high of US$41,490.
Initially, Bitcoin was able to climb above the 40,000 US dollar mark on 7 January, but selling pressure then emerged, which had temporarily lowered the price back to 36,600 US dollars. However, investors perceived this as a buying opportunity, a trend that has already been seen several times Bitcoin Trader during the current highs, whereupon Bitcoin was able to climb to a new high of 41,940 US dollars yesterday, 8 January.
The mood seems to be getting more and more optimistic, as more and more new capital is flowing into the market from institutional investors. As Cointelegraph had reported, Micahel Sonnenshein, the new CEO of major crypto asset management firm Grayscale, confirms that even pension funds are now getting into Bitcoin through his firm’s investment products.
CNBC financial expert Jim Cramer, meanwhile, points out that the crypto market’s continued upward trend has been accompanied by a drop in the value of gold, which could be further evidence that Bitcoin is increasingly outpacing the market-leading precious metal.
Although it is difficult to gauge how far Bitcoin’s soaring run will continue, it can be assumed that any downturn will be interpreted as a buying opportunity by institutional and retail investors, which will drive the price ever higher for the foreseeable future.
Stock market is slowed down
After the stock markets were also able to achieve new record highs on 7 January, the important S&P 500, Dow Jones and Nasdaq stock indices are now showing much less strength again, possibly due to the fact that the negotiations on new Corona aid payments in the USA have so far remained without a result.
Accordingly, the three stock indices went down yesterday, although they were able to regain their footing by the end of the day. As a result, the S&P 500 closed up 0.55%, while the NASDAQ and the DOW each posted gains of 1.28% and 0.18%, respectively.
Bitcoin struggles to find price range, altcoins lose out
Bitcoin, meanwhile, is trading in a price range of US$36,600 – US$42,000, with bulls struggling to establish the crypto market leader above the US$40,000 mark if possible.
However, selling pressure increased over the weekend, making the battle to carve out a new price range all the more interesting.
If Bitcoin manages to find a new support or move into a sideways movement, the altcoins would probably also benefit, which is why it is important for traders of the „alternative cryptocurrencies“ to keep an eye on the market leader.
Ether (ETH), meanwhile, is down 2.3% at $1,194, while Polkadot (DOT) and Stellar Lumens (XLM) are both down more than 6%, trading at $9.15 and $0.289 respectively. The reason for this is presumably the booking out of initial partial profits.
The total market capitalisation of all cryptocurrencies is 1.05 trillion US dollars. US dollars, of which Bitcoin has a 70.5 % market share.