The Bitcoin course is in a clear upward trend at the moment. BTC/USD was able to break the $20,000 mark again and seems to be able to establish itself at this level for now. Bitcoin is currently trading at around 20,700 dollars and therefore has seen a small increase again today after a small correction that occurred yesterday.
Bitcoin weaker than altcoins despite uptrend
Figures from coinmarketcap.com show a price increase of more than 7 percent for Bitcoin compared to the previous week when BTC/USD was still around $19,000. However, the current Bitcoin trend is weaker than that of many Altcoins. Ethereum buyers can look forward to growth of more than 20 percent during this period. The price of Binance Coin rose even 23 percent compared to the previous week and many other cryptocurrencies recorded increases of 10 to sometimes more than 20 percent.
However, these numbers are easily surpassed by the Dogecoin. Due to the Twitter deal by Dogecoin fan Elon Musk, the DOGE / USD exchange rate rose even more than 100 percent. Exactly this bullish movement was predicted by kryptoszene.de in its analysis on 23 October.
The Bitcoin dominance chart also shows that buying Ethereum or other altcoins currently gives better results than buying Bitcoin. It compares the trend of the key currency with the rest of the crypto market. Bitcoin is currently struggling not to fall below a market share of 40 percent. As early as September of this year, the market share of Bitcoin had slipped briefly to 39 percent.
That was the last time in 2018: Bitcoin only had a 40 percent market share
Bitcoin continues to show weakness compared to the top altcoins. Last year, BTC sometimes had a market share of more than 70 percent. In its history, Bitcoin was even weaker than the altcoins except at the beginning of January 2018, when the market share even dropped to 35 percent for a short time. This was the stage when altcoins were able to make one last parabolic rise in the 2017/2018 bull market before prices completely collapsed.
The next few weeks until the end of the year should be very exciting. If Bitcoin and the overall market can continue to recover and confirm the upward trend, this would really speak for the soft landing of the financial markets predicted by some analysts. So Bitcoin price has probably bottomed out in this bear market around $17,700.
The price of Bitcoin is down on the stock market
But it is still too early to give the all-clear for the Bitcoin course. The recent rally did not come from the strength of the crypto market itself, but it was just behind the main US stock markets. BTC has had a very high correlation with stocks over the past months. If the stock market falls, Bitcoin falls – but much more. If the stock market rises, so does Bitcoin – usually much more. If the stock market runs sideways, Bitcoin hardly shows any movement either.
Bitcoin buyers have been hoping for a long time that BTC / USD will be able to decouple from the classic financial markets sooner or later and show a strong upward movement against the general trend. But it’s not that far yet. Now could be a good moment for this anticipated situation. You have to keep in mind how and for what purpose Bitcoin was created.
Satoshi Nakamoto’s white paper on the Bitcoin network was a direct response to the financial crisis in 2008. The power of banks, the centralized system, unlimited money printing, rising inflation – Bitcoin should be the answer to all of this. But despite Bitcoin’s very strong price development since its inception, BTC has yet to prove itself as an inflation hedge. Right now, given the record inflation, would be a good opportunity for Bitcoin to decouple.
A 30 percent price jump or correction for Bitcoin is imminent
But the time has not yet come and for investors the question arises as to where the price will move next. Technical chart analysis can provide clues to Bitcoin price forecasting.
The daily chart shows that the Bitcoin price continues to move in a descending triangle. BTC/USD has been in this chart pattern since June this year. Since Bitcoin has multiple points of contact with the falling resistance line and the horizontal support line, it is a valid chart formation.
However, according to the technical probability, this chart pattern is clearly bearish. On the one hand, Bitcoin entered this formation from a downtrend, and on the other hand, the descending triangle itself is a pattern where a correction to the downside is much more likely than a breakout to the bottom. above.
In July, August, September 2022 and also in the current uptrend, Bitcoin tested the resistance without breaking out to the upside. Unless Bitcoin manages to scale higher than the $21,000 level now and declare this zone as a new support area for BTC price, the chances of Bitcoin breaking out of the bearish pattern against the contracts in a bullish way will increase significantly.
The price target for Bitcoin price during an explosive price breakout is around $27,000. With that, Bitcoin could see another strong rise of more than 30 percent and climb to the highest level since early June this year. Then BTC/USD would simultaneously test the next key resistance, which has been a very important support for Bitcoin price in the bull market of 2021. If BTC/USD also breaks this resistance, it could be a BTC rally fast and explosive.
However, the major correction from the descending triangle to the downside is more likely. In this case, the technical price target is only around $11,500. This is probably a scenario that many Bitcoin bulls don’t believe in right now. But if you compare the current cycle with previous bear markets, this price target is not unrealistic. In this case, the price of Bitcoin would show a correction of about 83 percent from its all-time high. The corrections in previous cycles moved within a similar range. Currently, BTC has fallen “only” 75 percent at the peak
Buy an alternative: Does Tamadoge also benefit from the Dogecoin hype?
However, currently many Altcoins give better returns than Bitcoin. This could also include the Tamadoge sign. The TAMA / USD course has already recorded a price explosion of more than 50 percent in the last three days and is therefore following in the footsteps of the Dogecoin. However, the meme token is still relatively cheap. Because if you buy TAMA now, you will get a strong discount of almost 85 percent on the highest level since the beginning of October.
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