Bitcoin has been explosive all of 2020, and while certain altcoins like Ethereum and a slew of DeFi tokens have outperformed the top cryptocurrency this year, altcoins overall have been a disappointment compared to past cycles.
Those who lived through past cycles, expected altcoins to take off the moment Bitcoin surpassed its previous peak. But that moment has come and gone, and while there have been some glimmers of positive momentum, the asset class as a whole is lagging behind BTC. This is reflected in BTC dominance, which could close 2020 with a dangerous-looking doji candle, signaling “indecision” and potential doom for altcoins in 2021.
Crypto Market Indecision: Bitcoin Dominance To Close 2020 With A Doji Candle
From the cryptocurrency » Read more
” href=”https://www.newsbtc.com/dictionary/bear/” data-wpel-link=”internal”>bear market bottom to current prices, altcoins have been left in Bitcoin’s dust. The leading cryptocurrency by market cap has led the bullish charge, and already is trading almost $10,000 above its former all-time high.
But altcoins are nowhere in sight, and not even in the rearview of Bitcoin at this point. The divergence in capital flowing between the two types of crypto assets has caused BTC dominance – a metric measuring the top crypto asset against other altcoins by market cap – to soar to 70%.
Related Reading | Ripple Lawsuit Triggers XRP Led Altcoin Apocalypse
70% dominance is roughly where dominance started the year, despite the rollercoaster ride of a year that was 2020. Because the distance between the yearly open and close could be so narrow, there’s a risk of the annual candle closing as a doji.
A red doji could be left behind on the 2020 BTC dominance chart | Source: CRYPTOCAP-BTC.D on TradingView.com
Doji are dangerous because they signal indecision and make choosing a direction less clear. They form at the top of trends when they are reversing or just before continuation when a market takes a breather.
The six-month candle pictured below shows that 70% dominance has acted as a strong resistance level in the past, and why it is currently presenting such a challenge to break. It could also act as a point where dominance turns around, Bitcoin bleeds or stagnates, and altcoins rocket off into the sunset.
Unfortunately, there are other factors both technical and fundamental that suggest this won’t happen in 2021.
Six-month resistance could soon be flipped to support | Source: CRYPTOCAP-BTC.D on TradingView.com
The Technical And Fundamental Reasons For The Coming » Read more
” href=”https://www.newsbtc.com/dictionary/altcoin/” data-wpel-link=”internal”>Altcoin Apocalypse
Zooming out further to quarterly candles below, the 70% level looks ready to break. A close above the resistance level would lead to a strong push higher, taking BTC dominance to the 80 and 90% range.
The idea might sound unreasonable with all of the projects in the crypto market compared to Bitcoin, but the sentiment surrounding altcoins keeps getting worse.
Quarterly charts suggest that resistance at 70% dominance will soon break | Source: CRYPTOCAP-BTC.D on TradingView.com
Altcoins haven’t recovered nearly as much as Bitcoin, and might not ever. The assets aren’t an “institutional product” according to some investors, and institutions thus far have mostly been focused on BTC.
Few have lived up to any of the promises made three years ago, while Bitcoin has taken on an entirely new narrative that has caught on in a major way. Failure to produce any sort of FOMO like the last alt season, even after BTC taking out its all-time high, has holders questioning their position.
Is an ascending triangle on BTC.D about to annihilate altcoins? | Source: CRYPTOCAP-BTC.D on TradingView.com
And while that could change and traditional finance could also target DeFi tokens, the SEC’s recent attack on crypto by way of Ripple could be the fatal blow to altcoins that sends BTC dominance skyrocketing.
According to top industry analysts in the know, the SEC is “sniffing” around other » Read more
” href=”https://www.newsbtc.com/dictionary/altcoin/” data-wpel-link=”internal”>altcoin projects and companies, and could continue to take shots at the industry throughout the new year.
The price action due to institutions being so bullish on Bitcoin compared to altcoins could be forming a massive, multi-year ascending triangle pattern on BTC dominance. And if this pattern triggers to the upside, altcoins are doomed in 2021.
Featured image from Deposit Photos, Charts from, TradingView.com
Unlike Dogecoin, Catecoin Gives a New Meaning to Meme Coins with Real Use case
In the present-day connected world, memes have become an integral part of our pop culture. While one can’t put a monetary value on the entertainment they provide, its creators can definitely be encouraged and rewarded for their contribution towards a lively internet.
Catecoin, the first decentralized meme-based token is trying to do just by incentivizing content creators as well as consumers. The project is the first of its kind to implement DeFi features in the content space. Fueled by the CATE token, the project offers a platform for user-generated content, quite similar to 9GAG but on a blockchain, along with content farming and staking features.
How does it work?
Using the Catecoin ecosystem is as simple as using any social network platform. Content creators can submit their creations to the Catecoin Meme Platform and once published they will start earning CATE rewards as the community likes or comments on that content. Even platform users who interact with the posts will receive rewards for their comments and likes.
Meanwhile, the posts are evaluated based on the received reactions. Any post with 500 or more likes from the community will become eligible for a transformation into an NFT and get listed on the NFT market. Catecoin refers to this entire process as Content Farming and has set aside 35% of CATE supply for this alone.
CATE is the utility token of the Binance Smart Chain-based Catecoin project. Apart from value exchange, these tokens also control the accessibility of the platform. Users should hold a minimum of 10,000 CATE to interact with any posts on the platform. Similarly, content creators will have to maintain a balance of 100,000 CATE to be able to submit their works to the platform.
While each like or comment will result in both content creators and consumers receiving 0.1 CATE each, the community can also earn additional returns by just holding the tokens. The platform shares one percent of each transaction made on the network with CATE holders, and at the same time burns the same amount to regulate supply.
Once a meme gets converted to NFT and lists on the NFT market, anyone can purchase it and start receiving any rewards the asset may generate in the future.
Get some CATE, it is simple
In just a few simple steps, one can become part of the Catecoin community early on. CATE is listed on PancakeSwap and users can acquire the tokens against BNB payment. Buying CATE will require users to download and set up Trust Wallet and MetaMask accounts and hold some BNB in their wallets. They can then visit PancakeSwap, make payment in BNB to the Catecoin token 0x118f073796821da3e9901061b05c0b36377b877e and receive the tokens in their connected wallet.
— CateCoin (@cateclub) May 13, 2021
What Makes CATE Different?
The flood of meme coins into the crypto market started long ago, and Dogecoin is the prime example. Many of these coins have a virtually unlimited supply and no real use cases. On the other hand, CATE has a definite supply of 100 trillion and a deflationary mechanism that reduces the supply by 0.5%-1% per transaction while providing a real-world use case – encouraging meme creators to monetize their content. The model adopted by Catecoin makes it the most sustainable meme project out there.
Amid Rumors Of Dumping Its BTC Holdings, Elon Musk Maintains Tesla Hasn’t Sold Any Bitcoin
Elon Musk has been dragged under the bus by countless bitcoin proponents as the price of the flagship currency continues to take a downward movement. Bitcoin dropped 20%, sending prices to $45,000 as of yesterday.
As of publication, Bitcoin imitates analysts’ predictions that the asset could continue to dip for the most part of this week, and with Bitcoin now trading at $45,065 at press time, their analysis remains valid.
The Bitcoin selloff continues
Asides from the “bearish” tweets from Musk, which to many is simply just the Billionaire’s expression of his dissatisfaction with Bitcoin, Bitcoin could sustain more losses if Tesla sold its remaining Bitcoin holdings.
Following Tesla’s announcement, onlookers spotted a Bitcoin transfer of 19,259, worth over $872 million at press time. Analyst William Clemente observed that the transfer time coincided with Musk’s tweet, hinting that Tesla may have indeed called it a day for Bitcoin.
Musk reveals Tesla’s $1.5 billion holdings still intact, prices soar
However, Musk has recently cleared the air on whether the Bitcoin holdings are still under Tesla’s belt. In what could be considered the most recent positive tweet from Musk on Bitcoin, he wrote “To clarify speculation, Tesla has not sold any Bitcoin.”
Some excited Bitcoiners are holding on to the news as a sign that Tesla has not lost all interest in Bitcoin, despite Musk’s tweets that Dogecoin is a superior asset to Bitcoin. On the other hand, skeptical Bitcoiners are convinced that in a matter of time, Tesla will pull through with its Bitcoin sale.
Recall that Elon Musk teased that this could be the case, given that Bitcoin proponents have continued to critique Tesla’s decision. Shortly after hinting that Tesla might give up its $1.5 billion Bitcoin holdings.
However, Bitcoin has since surged by 7% since Musk’s clarification on Tesla’s Bitcoin holdings.
Bitcoin doesn’t need Elon Musk
Meanwhile, analysts’ who heavily bought the dip have insisted that Bitcoiners pay no mind to the bear market.
In unison, key players agree that “Bitcoin doesn’t need Musk. Rather, Musk needs Bitcoin.” It is unclear where the market is headed going forward, but the sentiments from top Bitcoin proponents similarly claim that the bear trend is only temporary, as Bitcoin is still yet to bottom.
Elon Musk tweets BTC price bottom? 5 things to watch in Bitcoin this week
Bitcoin (BTC) is nearing $40,000 this week as “Dogefather” Elon Musk deals out pure pain to hodlers — what’s next?
After a traumatic weekend for many crypto investors, Monday is setting the stage for the next chapter in the wild 2021 bull market.
Cointlegraph takes a look at five factors which could shape what Bitcoin and altcoins do next.
Musk tweet hits key Bitcoin technical level
It’s all about one man yet again this week: Elon Musk. In characteristic fashion, the Tesla and SpaceX CEO caused uproar on Twitter when he came out bearish on Bitcoin.
BTC/USD sold off immediately on news that Tesla was halting BTC payments for its products, but for Musk, this was not enough.
Further tweets over the weekend, including criticism of Bitcoin’s decentralization and how he “believes in crypto,” added fuel to the fire.
It was a hint that Tesla may already be planning to sell its holdings, however, that caused the most misery. Bitcoin fell to near $42,000, retesting this previous all-time high level before steadying as Musk stressed that no sale had occurred.
“To clarify speculation, Tesla has not sold any Bitcoin,” he wrote on Monday.
With Musk versus the cryptocurrency community beginning to look like a full on war, Bitcoin is thus unsurprisingly volatile as all eyes remain on the Twitter battlefield.
At the time of writing, Bitcoin was trading at around $44,800, still down 8.7% over the past 24 hours.
As analyst Alex Krueger noted, however, the clarifitication tweet may be unwittingly acting as a local bottom signal, as Musk posted it just as BTC/USD hit a key 61.8 Fibonacci retracement level.
“Elon Musk must be an outstanding technical analyst,” he commented.
“His ‘Tesla has not sold any Bitcoin’ tweet was posted exactly at Bitcoin’s key technical level, the 61.8 fib ($42,845).”
BTC dominance falls below 40%
Musk’s activities have had a detrimental impact on Bitcoin and altcoins alike.
In terms of bearishness, however, nothing shows how much the average Bitcoin holder is suffering like market dominance.
On Monday, Bitcoin’s overall market cap share dipped below 40% for the first time since June 2018.
Already on the way out, dominance was dealt a significant blow thanks to the recent Bitcoin price pressure, while alts such as Ether (ETH) benefitted.
“The Bitcoin dominance is still falling,” popular Twitter trader The Moon summarized over the weekend.
“The alt season is not over yet. But my gut feeling is that the end is near!”
Bitcoin fundamentals provide calm
For all the nerveracking price action, meanwhile, nothing provides a bullish counterpoint to the current Bitcoin narrative than its network fundamentals.
Even after its $42,000 dip, Bitcoin is more attractive than ever for miners, and its network security is therefore also more solid than ever before.
As Cointelegraph reported, both hash rate and difficulty have staged a miraculous recovery in recent weeks, reclaiming all-time highs after a miner washout caused its own brief price crash.
The weekend proved to be no different, with weekly average hash rate topping 180 exahashes per second (EH/s) for the first time.
Difficulty is still on track to increase by over 10% at the next automated readjustment in 11 days’ time. The previous readjustment on May 14, at 21.5%, was the largest positive shift since June 2014.
“Bitcoin’s mining difficulty hitting an all-time high just after tesla’s announcement is a chef’s kiss,” Alex Thorn, head of firmwide research at crypto merchant bank Galaxy Digital, said last week.
Dollar bounces at support
Taking a break for crypto-specific triggers, the wider macro picture may yet provide some inspiration for price trajectory.
After plunging late last week, the strength of the U.S. dollar is returning. The U.S. dollar currency index (DXY) is bouncing off familiar support — surges in its strength tends to provide teething problems for BTC/USD.
At the same time, stocks are bullish in China but performing averagely in Europe and the U.S. Coronavirus, with localized peaks in some jurisdictions but fewer cases in others, joins the melting pot.
Among traders, however, it is inflation that is a key issue. A broad global rebound from the time of lockdowns and other restrictions creates problems for those attempting to engineer it — specifically, the U.S. Federal Reserve and other central banks.
“The global economic recovery is well under way; that’s what’s fueling the inflation fears,” Olivier d’Assier, Qontigo head of APAC applied research, told Bloomberg.
After stock markets’ rip roaring year, he added, appetite for profit taking will be understandably increasing.
Bitcoin still beats its last bull market
Is it 2013 or 2017 in terms of the Bitcoin bull market?
Among the industry’s best-known names, there is no hint of bearishness — all that remains to do is analyze the nature of the current retracement and compare it to years past.
This week, stock-to-flow creator PlanB notes that for all the Musk drama, Bitcoin is still performing better than during its 2017 run to $20,000. This despite the $42,000 dip officially being Bitcoin’s biggest this bull cycle and since the cross-asset crash of March 2020.
“It’s not a straight line to the next ATH, but a lot of volatility (multiple -30% dips). HODL.”
Calling for calm and zooming out is a key feature among seasoned Bitcoiners. As Cointelegraph reported last week, stock-to-flow remains unviolated by Musk or any other episode of downward volatility.
An accompanying survey meanwhile revealed that a majority of 35,000 respondents believe that BTC/USD will still hit $100,000 this year.