Analyst: altocoins pressuring growing bitcoin

Leading RoboForex analyst Dmitry Gurkovsky talks about further possible scenarios of bitcoin price movements.

Increasingly, there are reports that bitcoin may replace gold in the near future. After all, it is digital currency that is more functional and easy to use than a precious metal bar. Bitcoin is much easier to use, store and pay with it.

All this maximally supports current bullish sentiment in the market – even conservative investors are beginning to see the leading asset as ‚digital gold‘. And according to surveys, the number of millionaires who are ready to invest in cryptov currencies is only growing: about 73% of those surveyed are ready to buy digital assets in the next 2 years.

It is also worth noting the fact that buyers almost do not let the BTC/USD rate fall: when a minimum correction occurs, bulls immediately buy the asset and its growth resumes.

This can be clearly seen on the 4-hour chart of the crypt currency. As soon as the price falls below the fast Moving Average, it bounces up and the upward trend continues. At the same time, BTC/USD quotations have never dropped below the slow Moving Average since the impulse appeared on 10 October 2020. Only a break-down will cause buyers to reduce the pressure on the bears, which could lead to a prolonged price correction.

Mining revenue peaked after a serious fall before halving. This once again confirms that the market has fully recovered and is ready to move on with the bullish trend.

However, the growth leader this trading week is not Bitcoin – as soon as the quotes of the first cryptovoltaic currency reached a historic high, the altoin market immediately showed strong growth.

Most of the largest coins in terms of capitalisation have not yet replicated bitcoin dynamics, so the potential for growth in althcoins is quite strong. This can be clearly seen in the example of XRP, whose capitalisation has more than doubled since Friday last week.

On the weekly chart, the fixation of the RSI above the resistance line remains a strong signal in favour of breaking the historical maximum. In most cases, this situation ends with the breakdown of the nearest resistance, which in this case is at $20,000.

On smaller timeframes, the bulls immediately buy the asset at moments when downward corrections develop, so there is a good chance of seeing a break-up of the resistance in the very near future without a noticeable drop in the cost of the bitcoin.

If we consider the width of the channel as a guideline for the development of an upward trend, then the growth target will be $25,000.