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The Fate of Bitcoin, Altcoins, and Cryptocurrencies in General

According to Peter Brandthim, Bitcoin is the only cryptocurrency that has real, lasting value, while most of the altcoins are just ‘junk,’ as he calls them.

The future of Bitcoin remains as uncertain as ever, but current speculation about what might happen to the crypto king and altcoins can vary significantly. A recent poll and the opposite opinion of an expert are a perfect example.

It wasn’t too long ago when the fate of cryptocurrencies was uncertain as the entire crypto space was considered to be nothing but a bubble that would burst at any given time. Each time when the crypto space faced a new bearish period, a controversy, or an incident of some kind — skeptics were quick to announce the death of Bitcoin and the entire crypto space. And as we all know, they ended up being wrong every time.

To this day, Bitcoin continues to lead the crypto market and dominate over it, with its performance setting an example for the performance of most other coins, the altcoins. But, many are wondering whether or not this will change in the future, or even if it can change at all. And, since the crypto space depends on the public opinion so much, researchers decided to address the public with this very question.

According to a survey done by bitFlyer Europe, it was discovered that Europeans believe that digital currencies are not going away. Many of the participants expressed a belief that crypto will still be around in ten years. In fact, this was an opinion of 63% of 10,000 questioned individuals in ten different European countries.

While this does seem like a good thing for crypto, the situation is not so bright for Bitcoin, in particular. The topic of Bitcoin actually brought a surprising turnaround, with poll participants showing a lot less confidence in the king coin, with only 55% of respondents thinking that BTC will stick around for another decade.

However, this is likely the result of bad press which the media continues to pump out by continually claiming that Bitcoin is dead, reporting hacks, investment losses, and focusing more on the damage that is being done to BTC than to any other coin. This kind of behavior is only bringing even more damage to it along the way.

A well-known analyst disagrees

On the other hand, there is Peter Brandt — an American trader, writer, publisher of the weekly Factor Service (and more), who turned out to be a significant Bitcoin supporter and believer. In fact, according to him, Bitcoin is the only cryptocurrency that has real, lasting value, while most of the altcoins are just ‘junk,’ as he calls them.

Earlier today, on his Twitter, Brandt argued that altcoins are lead to Bitcoin’s gold while showing charts that clearly indicate numerous altcoins whose performance follows Bitcoin’s lead. However, he may not be ready to dismiss absolutely all of the altcoins just yet.

When another Twitter user pointed out that younger generations might choose some of the altcoins such as Ethereum or Litecoin due to their benefits over BTC, Brandt confirmed that LTC and ETH have a lot more chances of surviving than the rest of the altcoins. The veteran finance expert believes that Bitcoin will remain the best and largest coin, while the majority of modern-day altcoins won’t be around in the next five years.

The future remains uncertain

Interestingly enough, Brandt’s opinion seems to be a total opposite of the bitFlyer’s poll results, which indicate that BTC will be the one to go away, while the crypto itself will survive. Obviously, no one can tell the future of Bitcoin right now and say with any certainty what could happen.

However, it is interesting to see the differences in opinion, with a professional analyst on one side, and the public view on the other. It will undoubtedly be interesting to see how the situation will unfold over the following decade, and whether or not Bitcoin will manage to keep its dominance for another ten years.

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BTC, ETH, XRP — Uncertainty in Market Continues

The cryptocurrency market has partially restored its position. Meanwhile, the altcoin market today is mixed. Some of the top 10 coins are located in the green zone, while others are in the red. 

Top 10 coins by Coinstats

The key data below for Bitcoin (BTC), Ethereum (ETH), and XRP indicate what’s to come.

NameTickerMarket CapPrice Volume (24h)Change (24h)
BitcoinBTC$157 602 979 990$8 671,44$24 584 873 2460,23%
EthereumETH$18 419 910 476$168,40$9 910 073 6690,11%
XRPXRP$10 305 414 349$0,235952$1 623 122 240-0,19%

BTC/USD 

The technical picture of Bitcoin (BTC) has not changed much since Monday. For a moment, there was an attempt to break the $8,550 level. 

BTC/USD chart by TradingView

However, the downward movement under pressure from the bears fit into the framework of the current volatility and it was bought back quickly enough.

Must ReadBitcoin (BTC) Price Skyrocketed to $14,000 Last Time This Indicator Turned Green – READ MORE

Over the past three days, local consolidation has formed. All in all, the strategy does not change, since for a longer time period, the trend has persisted and the line of least resistance is still directing upwards.

Bitcoin is trading at $8,649 at press time.

ETH/USD

Ethereum (ETH) quotes remain trading sideways. Based on an analysis of the trading activity of participants, it can be assumed that interest in purchases is held by small speculators, while large buyers still prefer to stay away.

ETH/USD chart by TradingView

On the hourly chart, the chief altcoin is likely to decline in the short-term. The line of the RSI indicator is going down, confirming the ongoing dominance of buyers. Regarding the nearest price forecast, traders might expect the coin to be located at around the $165.50 level.

Ethereum is trading at $166.96 at press time.

XRP/USD

XRP is trading without significant changes. After a rebound from the support level, quotes have remained sideways.

XRP/USD chart by TradingView

Even though XRP has continued a sideways trading trend for a few days, it will face a decline shortly. The rate of the coin has decreased by almost 2% over the last day. What is more, the MACD indicator has just switched to a bearish trend. Summing up, the more likely scenario is a drop to the closest support of $0.23.

XRP is trading at $0.2344 at press time.

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Your Weekly Dose of Crypto Markets : Bitcoin Futures, BTC/USD Performance & Altcoin Mining

The leading financial derivatives platform Chicago Mercantile Exchange Group (CME) promised to launch the much-awaited options on Bitcoin futures on Monday, January 13. 

Chicago Mercantile Exchange is Launching Bitcoin Futures on Monday, 13. BTC/USD pair signals bullish zone while the crypto space anticipates more altcoin mining operation in the race to diversify income streams. 

Into the third week of 2020, we all expect exciting events in the crypto space. Bitcoin gained at least 10% in the second week and hit an annual record of $8,452. The broader market also witnessed similar gains with Litecoin (LTC), Bitcoin SV(BSV) and Bitcoin Cash(BTC) posting similar corrections. 

Additionally, several events that could have a broader impact on the crypto space took place last week. US – Iran tensions heightened. Iran admitted to bombing down Ukranian plane among more stories. The industry anticipates that the third week of the year will be busier and markets will post even higher gains. 

Chicago Mercantile Exchange  (CME) Bitcoin Futures

In fact, the leading financial derivatives platform Chicago Mercantile Exchange Group (CME) promised to launch the much-awaited options on Bitcoin futures on Monday, January 13. 

Given the growing market capitalization of Bitcoin, several options of trading the asset have been growing as well. However,  concerns with ETFs (Exchange-traded funds) in the United States means that ETFs will not be available until a while later. Nevertheless, the launch of Bitcoin options will bring in more institutional investors into the market.

Noteworthy, options are financial derivatives that enable holders to buy or sell an asset at a specific price on a predetermined date; However without the obligation to trade them. Hence, such options enable speculators to bet upon a price surge or drop of the asset through leverage trading. 

Meanwhile, CME will avail Bitcoin futures on Monday that have a single contract representing BTC 5. These futures will provide more flexibility while managing bitcoin fluctuation risks. Additionally, the options will have the ability to save on potential margin offsets between options and futures. This is possible through the mitigation of risks of counterparty default through the central clearing of the CME market place.

BTC/USD Pair Performance

Bitcoin (BTC) fell from its 2020 high of $8,452 on January 8.  The decline was however temporal since the price bounced off the downward correction that had acted as the key resistance. Meanwhile, the many attempts to remain afloat above the $8K support serves as a positive sign. In case the bulls manage to push the price beyond the present $8, 170 price zone, this signal could easily begin a new upward correction. The 20-day exponential moving average (EMA) is steadily rising and has positioned the Relative Strength Index (RSI) in a positive zone.  

A position that points out that the market is strongly bullish. However,  will the bulls fail to scale and maintain beyond the $8,200 support level, the existing bullish view will certainly be invalidated. BTC/USD pair will turn red in case the price drops below the moving averages and the $7,000 critical support.  Well, it would be easy for traders and analysts to watch a stop loss on the long positions around the $6,500 and $6,800 supports.

Mining Pools Integrating More Alternative Coins

A token data and rating analytics ‘TokenInsight’, released a report claiming that mining pools are likely to integrate more altcoins into their mining operations in 2020.  

The report noted that altcoin mining has massive market potential. Last year’s report accounts for at least 64 coins that could be mined, in addition to Bitcoin all sum up to 82% of the total market cap. 

Nonetheless, altcoins are entering the key stage through both mining and staking. Eventually, the altcoins market is likely to gain more attention from the crypto community. Given the looming Bitcoin halving of miner rewards, mining pools are also looking for diverse ways to boost their revenue streams.

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Market sell-off or a winter selling season

  • The main pairs of the market reach limit levels, traditional buying areas for professionals.
  • The active bullish patterns in the technical indicators of Bitcoin and Ethereum are surprising.
  • The market has quickly reached an oversold zone, but the pain can last until the end of the year.

The day’s headlines focus on finding culprits for recent falls along with the crypto board.

In my opinion, excuses should not be sought. The current movement develops within a purely technical story, and pointing out any given reason can help us dramatize the moment.

An unpleasant, disillusioning story that is difficult to look directly at because of the anguish it can generate.

Fortunately, technical analysis provides us with tools to contextualize the current moment and discover the possible opportunities hidden behind the negativity of the moment.

Opportunities appear in times of crisis, and for those who still find the crypto market attractive, the chances are there.

ETH/BTC Daily Chart

ETH/BTC is currently trading at the price level of 0.0183 and is losing more than 10% on the last three days, with fear driving the market. 

The price once lost the magic support at the 0.20 level, has collapsed on the confluence of two trend lines originating from the two most critical relative lows in recent years. The first occurred in December 2016 (A), while the second occurred in September (B) this year.

I want to highlight that December 2016 marked the beginning of the last bull market in the crypto market.

The information provided by this chart is, in my opinion, enough to have reliable scenarios. 

Below these trend lines, the pair ETH/BTC lost the bullish triangle that was born in December 2016. You can give it some margin up to the relative minimum at 0.016408. The bearish break of this support would activate a massive movement of money from the Ethereum to the Bitcoin.

Above the current price, the situation can worsen if the ETH/BTC does not recover the 0.020 price level. It is a probable move since the SMA100 and the EMA50 move at that price level. Even the SMA200 at 0.022 is a point of upward attraction.

I want to highlight the situation of the leading moving averages. All three averages enter the bullish zone of the scenario and with quite a margin of distance to the bearish zone. 

The MACD on the daily chart does not reflect the strength of the movement. The lines are leaning lower but are barely able to open between them. The current structure should allow a quick turn upwards.

The DMI on the daily chart reflects –here it does– the impact of the drop on the indicator. The bears explode to the upside and exceed the line of ADX, which activates a bearish pattern in the short term. The bulls are going to levels not seen since December 2016! 

BTC/USD Daily Chart

The BTC/USD pair is currently trading at the price level of $6631 and stops falling for the time being as it finds support in one of the trendlines born in December 2018 (B). At the time of writing these lines, the candle is green, which confirms that the support is minimally considered valid.

Below the current price, the BTC/USD pair has two opportunities to stay within the bullish scenario that was born in December 2018 (A). The first support level (C) goes through $5,480 today and coincides with Fibonacci’s 23.6% retracement level of all previous rally. The second support level (D) at $4,400. If BTC/USD lost the support (D), the current bullish trend would fail and we could consider any lower price level.

Above the current price, the first trend line (E) is at $8.075, then the second resistance at the Fibonacci retracement level 50% of the entire previous rise.

The MACD on the daily chart does not show the strength of the bearish movement, and although it inclines downward, it fails to open between the lines. 

The DMI on the daily chart shows how the bears are climbing sharply, but crashing into the ADX line and, surprisingly, activating a bullish pattern! The bulls, in spite of the falls, show divergences from the lows at the end of November.

ETH/USD Daily Chart

ETH/USD is traded at the price level of $121.8, supported by a price congestion level (A) at $120. Ethereum is not within a bullish structure according to the current chart available. The only decisive factor in the pair is the situation of the leading moving averages, which move above the bearish trend line (B) from the June highs. The main moving averages are a strong price attractor, and running within the bullish scenario is hopeful.

Below the current price, the first support level is at $120 (A), then the second price congestion support level at $100 (D) and the third one at $82 (E).

Above the current price, the first resistance level is at $160 (EMA50), then the second at $162 (B) and the third one in the long term moving averages (C) zone.

The MACD on the daily chart shows a downwardly inclined profile but hardly any opening between the lines. 

The DMI on the daily chart shows bears shooting upwards even though they do not make it past the ADX line. This structure, for the moment, activates an upward pattern!

XRP/USD Daily Chart

XRP/USD is currently trading at the $0.18 price level and is dropping the $0.20 support that had worked since the last months of 2017. The macrostructure of the XRP/USD is bearish, with no bullish trend to take refuge in.

Below the current price, the first price (A) congestion support is at $0.18. This level is reinforced by the bearish trend line that is ruling the price movement of the XRP since April 2017. The second support level (B) is $0.15. Below this support level, the scenario is uncertain and could take the price to the $0.10 zone.

Above the current price, the first resistance level is in the confluence zone (C) of the EMA50 and the SMA100 at the $0.25 price level. The second resistance level is formed by the SMA200 (D) at $0.30. The XRP/USD pair will not enter a bullish scenario if it does not breach the first line of the trend (E) by $0.44.

The MACD on the daily chart shows little bearishness and no opening. We have to wait a few days to get reliable information.

The DMI on the daily chart shows how the bears move quickly upwards but remain below the ADX line, which cancels the activation of the bearish trend. Bulls go extreme levels not seen since late 2016 — possible bullish rebound in play.

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