Bitcoin Price Rally Runs out of Steam, LTC Keeps Surging

Bitcoin, the flagship cryptocurrency, has recently seen its price drop to little over $3,900, as the rally that saw it rise well over 10% in a few days has seemingly started stalling. Some analysts believe remaining at this level would still be a bullish sign.

According to CryptoCompare data, BTC has recently managed to surpass the $4,000 mark for the first time in six weeks, but its price started dropping soon after. At press time, BTC is trading at $3,950 after losing 0.6% of its value in the last 24-hour period.

Bitcoin's price performance in the last 24-hour period

Other cryptocurrencies, including Litecoin, EOS, Bitcoin Cash, and Ethereum, have also seen their prices rise this week. What exactly was behind the crypto market’s rally is unclear. Some have claimed mainstream investors are entering the market, while others have pointed to JP Morgan’s JPM Coin as a reason for the rally, claiming it was a delayed reaction.

Institutional investors are believed to enter the market once a bitcoin ETF is approved. Currently, the SEC has two proposals on the table. The rally, however, is noticeably stalling, as most cryptos are down for the day, with the exception of a few, including Binance Coin, thanks to the launch of the Binance DEX’s public testnet.

Litecoin, a cryptocurrency seen as the silver to bitcoin’s gold, is notably up over 6% in the same period. Behind its rise appear to be groups on Chinese social media platform WeChat, which have reportedly been constructing a narrative around Litecoin’s halving event, expected to arrive in 168 days.

Although the crypto market rally is losing steam, most appear to remain bullish. According to a poll conducted by eToro senior market analyst Mati Greenspan, out of 355 respondents 30% believe cryptocurrencies will continue surging, while only 14% see it sustain current levels.

About 27% claimed the crypto market will retrace back to its lows, while 29% admitted they don’t know what’s going on, or just voted to see the results. Speaking to CryptoGlobe, Greenspan noted he also isn’t sure where the market is going.

Nevertheless, he noted that a retracement would be normal after such a price rise, although sustaining current levels for a few days would be a “very bullish sign.”

After this type of price move a retracement would certainly be normal, but if it even just sustains these levels for a few days it would be a very bullish sign indeed.

Despite the recent pullback, positive news have kept on coming. Elon Musk, a co-founder of PayPal and the CEO of Tesla and SpaceX, has recently revealed he believes bitcoin is “quite brilliant,” and also gave Ethereum some merit. Bitcoin’s rally has seen it get on track to record the first green monthly candle in over six months.

Billionaire Novogratz: Altcoins Won't Pump Like In 2017 Bull Run, Bitcoin Will Dominate

It appears that cryptocurrency prices have finally begun to recover after enduring an extended bear market which lasted throughout 2018.

As the market capitalization of Bitcoin (BTC) and other major cryptoassets continues to rise, several analysts have been drawing comparisons between what they’re seeing in the current market and what they observed during the historic bull market of late 2017 and early 2018.

Commenting on the recent crypto market price movements via Twitter, Ran NeuNer, the host of the CNBC Africa Trader show, remarked:

The market is running but we still haven’t seen the crazy alt pumps, pumps where coins do 40% in a day...is it coming?

Bitcoin To “Outperform” All Other Cryptos “This Time”

As the bitcoin price begins to recover, there have been many predictions made regarding the anticipated performance of altcoins. Twitter user “Crypto Bitlord” (@Crypto_Bitlord), a widely-followed digital asset market analyst, believes XRP, which currently has a market cap of around $16.3 billion, may trade as high as $10.

However, prominent crypto investor Michael Novogratz believes that digital asset traders are a lot smarter this time, when compared to some of the bad investment decisions they might have made during the initial coin offering (ICO) craze of 2017.

Novogratz, who’s the founder and CEO of Galaxy Digital, a full-service crypto merchant bank, has predicted that in this market run, Bitcoin will “outperform” all other cryptoassets.

On May 16th, 2019, the Bitcoin price surged to a 2019 high of $8,373 according to CryptoCompare data. In response to bitcoin’s recent price movements, Juan Villaverde, the Chief Analyst at Weiss Crypto Ratings, told CryptoGlobe: 

Bitcoin could fall to as low as $4,400. But [if] it does, it will be the best Bitcoin buying opportunity since 2015.

“More Good News For New Bitcoin Users”

Villaverde, an econometrician and mathematician focused on developing various crypto index models at Weiss Ratings, believes bitcoin would be a great buy at a lower price (as suggested above) because of the following reasons:

  • “The usage of Bitcoin is near all-time highs – 450,000 transactions per day. That’s up from a low of 150,000 in April of 2018 and approaching the all-time high of 490,000 in December of 2017.”
  • “Despite the high transaction volume, fees on the Bitcoin network are at their lowest levels since August of 2017 – more good news for users.”
  • “The Bitcoin block size is now greater than ever before, thanks to the Segwit technology upgrade.”

Villaverde further noted that the predictions are “based on studying the time patterns in Bitcoin's rises and falls throughout its 9 year trading history.” He explained that the time patterns have been analyzed by using an “algorithm-based market cycles model.”

The Chief Analyst at Weiss Ratings also mentioned that the bear market “ended on December 15th 2018 and the model confirmed this shift in trend on March 26th of this year.”

He added:

Then, after the rally that took place starting on April 25th, the same model told me a new bull market was now underway. The same model indicated a 30% to 45% correction due as of late April-early May and we seem to be experiencing that right now.