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What effect does the penny chapter have on breaking the historical peak of bitcoin?


Experts’ research shows that there is a contradictory relationship between the status of the bitcoin market and altcoins. Investors are almost certain that the penny season is over, but how can that affect the breaking of Bitcoin’s historical high?

to the Report According to Bitcoin, Bitcoin is not far from reaching a new historical high, and if the price rises by another 15%, the historical record of $ 64,800 will be broken. Bitcoin has surprisingly survived the recent market turmoil and has been able to recover a significant portion of its previous gains. However, Altcoins are not in a good position and in many cases, when the price of Bitcoin increased, they faced a decrease in price.

Because investors in the Altcoin market do not want to miss the recent uptrend in Bitcoin, they are selling and transferring their assets to the Bitcoin market. But does that mean the end of the peninsula season? Is what happened in the recent Alt Season going to be repeated this time around for Bitcoin? In the continuation of this article, we will carefully examine all the possibilities.

The penis chapter, bitcoin exchange rate and Elliott wave theory

First of all, it should be noted that the Altcoins or Alt-Season season is part of the mainstream digital currency market cycle, in which the price of many Altcoins is growing rapidly against Bitcoin and the dollar.

Bitcoin and Altcoins, although both are in the category of digital assets, have a contradictory relationship with each other. Prominent traders such as Nik Patel have spent years studying the strange behaviors of bitcoins and altcoins and have made great strides in this area.

Following the massive growth of the coin market in the first half of 2021, traders have now accepted that the coin season has been over for some time and new price peaks have stopped, and that is why they are migrating to the bitcoin market.

However, the recent return of bitcoin seems to be more than an upward leap, and given the relationship between the bitcoin market and the altcoins, the divergence between the two could be a sign of the start of a recent Alt Season-like move; Of course this time for the bitcoin market.

What effect does the penny chapter have on breaking the historical peak of bitcoin?
Bitcoin Mastery Rate Chart (Click image to view full size)

Leading analysts such as Tony Carrion, an expert at Elliott Wave International, a financial market forecasting and evaluation firm, have suggested that the Bitcoin “dominance rate” index is entering a stimulus wave. It is the fifth downtrend, meaning that the fourth wave of Elliott downtrends, which ended with a bear trap, is over, and the market is likely to continue to see a decline in bitcoin dominance.

But what if the fourth wave is coming to an end and another downward wave is forming?

The Altcoin Market Value Index (the total market value of digital currencies other than Bitcoin) indicates that there is a possibility that the Altcoin market value will continue to decline significantly. The end of the previous uptrend and the increase in the downward acceleration of the market value of the Altcoins can be seen in the image below and the section on the MACD indicator.

What effect does the penny chapter have on breaking the historical peak of bitcoin?
Altcoin market value chart (click image to view original size)

Which peninsulas will be better off at the end of the penis season?

If we compare the total market value index of digital currencies with the bitcoin price chart, there are similarities between the current market situation and early 2017, which is marked by an upward pattern in the chart below. If this pattern continues to work, prices may rise as they did in 2017, and the Bitcoin and Altcoin market cycle will peak.

What effect does the penny chapter have on breaking the historical peak of bitcoin?
Digital Currency Market Value Chart (Click image to view original size)

Because many altcoins have performed so well in the past, capital flows may continue to be split between other market currencies, and recently traded altcoins may be weak in their markets.

For example, during the cycle leading up to 2018, although Bitcoin and Ethereum reached new price highs, it was Ripple and LightCoin that showed the best performance at the end of the cycle. During the previous cycle, Bitcoin and Ethereum both had significant price performance when the market value index fluctuated below the uptrend, but lagged behind other currencies as the uptrend broke.

What effect does the penny chapter have on breaking the historical peak of bitcoin?
Bitcoin market value chart (comparison of the performance of different currencies during the uptrend cycle of 2017)

Also read: Bitcoin price since 2009; Browse important historical events + charts

The movements of the Bitcoin dominance rate index can be misleading, because with the boom of the coin market, the direction of the movement of this index has always been downward. Other charts that examine the market situation of different currencies against each other have more compelling reasons to indicate that the Altcoins season has just begun. The divergence between bitcoins and altcoins could be the same movement that has pushed capital from the altcoins market to the bitcoin market.

The psychological reason for this outlook is that the market has realized its mistake about bitcoin, and investors are now selling their assets, including the tools they held, to return to the bitcoin market. After a new historical peak in the bitcoin market and increased investor attention, new traders will switch to bitcoins instead of bitcoins.

The closer Bitcoin gets to and above $ 100,000, the less likely it is that other than large institutional investors will be able to enter the market. Altcoins will be the next option, especially those that do not face selling pressure; Like currencies that have performed poorly so far.

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