Expect Bitcoin to Break $14,000 Once Altcoin Bleeding Ends: Analyst
It’s been a brutal past few days and weeks for altcoins despite Bitcoin’s strength. Top digital assets aside from BTC have plunged a handful of percent, even dozens of percent, against the U.S. dollar, even as Bitcoin hits new year-to-date highs.
This divergence has shocked many investors in the space, especially those that entered the altcoin market late this summer. This pain may eventually end, though, an analyst noted. This same individual added that this may coincide with BTC breaking $14,000.
Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom
Bitcoin to Break $14,000 Once Altcoin Hemorrhaging Ends
Bitcoin analyst “Light,” who is celebrated by fund managers like Su Zhu of Three Arrows Capital, thinks that Bitcoin could soon break above $14,000 once the market sell-off ends:
“BTC is behaving in an incredibly strong fashion, up 0.9% l24hrs while alts hemorrhage and derisking continues in equities. Expect it to break $14,000 after the bloodletting runs its course.”
BTC is behaving in an incredibly strong fashion, up 0.9% l24hrs while alts hemorrhage and derisking continues in equities.
Expect it to break $14,000 after the bloodletting runs its course. pic.twitter.com/Zxeaq2FIcM
— light (@lightcrypto) October 30, 2020
$14,000 has long been a critical technical level for the leading cryptocurrency. It almost perfectly marked the highs of 2019’s rally, and also is in the vicinity of where Bitcoin closed its yearly candle at the end of 2017. Bitcoin moving above, then closing on a notable time frame on $14,000 will likely suggest the cryptocurrency will move dramatically higher.
Real Vision CEO Raoul Pal recently commented that $14,000 and $20,000 are the only two technical levels stopping new Bitcoin all-time highs.
Analysts assign much more importance to $14,000 than they do to $20,000 due to the amount of trading volume around the former price level.
Related Reading: Tyler Winklevoss: A “Tsunami” of Capital Is Coming For Bitcoin
Altcoins to Bounce
Altcoins are expected to bounce once Bitcoin begins to consolidate or distribute and once global markets turn risk-on once again.
The fundamentals of certain altcoins are stronger than ever. Case in point: the total value locked in decentralized finance (DeFi) contracts recently hit a new all-time high above $12 billion, around five times higher than this metric was in June.
Analysts expect these fundamentals to eventually translate into price action in the DeFi market.
Other altcoin sectors have also shown fundamental strength. Though, whether enough this will allow altcoins to outperform Bitcoin remains to be seen.
Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Expect Bitcoin to Break $14,000 Once Altcoin Bleeding Ends: Analyst
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Nick Chong, @KhareemSudlow