Bitcoin (BTC) dominance is likely topping out, Michaël van de Poppe says, as Bitcoin gives way to strong momentums from some of the top altcoins in first week of altseason.
Bitcoin (BTC) price is trading around $26,000 as fresh fallout from Ripple’s threatened lawsuit with the American’s Security and Exchange Commission was felt throughout cryptocurrency markets in first week of altseason.
BTC price dips as Coinbase halts XRP trading
Data from Cointelegraph Markets, Coin360 and TradingView indicated BTC/USD hitting lows of $25,830 during Tuesday trading.
$27,000 support level failed to hold overnight, sparking a retest of lower levels that now center on $26,000. On the weekend, Bitcoin hit all-time highs (ATH) of $28,400 before swiftly reversing.
The latest losses come as XRP, the fourth-largest cryptocurrency by market capitalization, hits $0.23 thanks to major U.S. exchange Coinbase opting to suspend its trading from next month. The SEC’s lawsuit against the token threatens to classify XRP as an unlicensed security and make trading it legally impossible.
“There is going to be a rangebound construction, after which 2021 will most likely break out again,” Cointelegraph Markets analyst Michaël van de Poppe said about Bitcoin’s short-term outlook on Monday.
Analyst braced for first week of altseason
Van de Poppe is eyeing alternative coins as next in line to see major gains. XRP notwithstanding, the market is already showing signs of recovery, with Ether (ETH) surging above $700 for the first time since May 2018 this week.
Another winner on Tuesday was Polkadot (DOT), now the seventh-largest token by market capitalization, which faced a 22.5% daily rise, capping weekly performance of nearly 34%.
For Van de Poppe, the next “impulse wave” on BTC in 2021 should take the market to $40,000 or $50,000, but “until then, altcoins will most likely do well.”
He pointed to a likely top in Bitcoin market cap dominance as well, which at almost 70% should soon give way to altcoin presence. December tends to see Bitcoin dominance peaks, with 2017, the time of Bitcoin’s first struggle to clear $20,000, a notable comparison.