Bitcoin rally sends altcoin prices soaring – here’s what happens next
Bitcoin’s rally up to 34,800 USD also led to significant gains in the altcoins this week. Only Ripple is weak again this week and threatens to slide towards its all-time low.
The crypto market continued to move significantly northwards in the past trading week. The interim price explosion of the leading currency Bitcoin to USD 34,800 also caused the prices of most altcoins to rise significantly in value. The cryptocurrency Dogecoin (DOGE) has risen in value by around 200 per cent in the last 48 hours and is currently 89 per cent up. On the other hand, possible bans on Bitcoin Code privacy coins such as Monero (XMR) and Dash (DASH) are causing significant price drops for payment coins. Possible de-listings on the major crypto exchanges could lead to a revaluation of these cryptocurrencies. In the last few hours of trading, the market as a whole has seen significant profit-taking, which has also caused the bitcoin price to fall back to the current level of USD 31,400.
lue. This continues the bullish sentiment on DOT mentioned in the previous week’s analysis. The DOT price broke out of the trend channel to the upside and climbed to a peak of USD 10.50. The DOT price thus reached the upper limit of the trend channel. The DOT price thus reached the first important price target at USD 10.23 (200 Fibonacci extension). Currently, however, Polkadot is correcting slightly and is trading at USD 9.31 at the time of this analysis.
Bullish variant (Polkadot)
As long as Polkadot trades above the trend channel and does not slide back below USD 7.89, a renewed bullish attack is conceivable. If Polkadot can stabilise above the 138 Fibonacci extension at USD 8.16, or even above the 161 Fibonacci extension at USD 8.95, a retest of USD 10.23 is to be planned. If the bulls can also dynamically overcome the all-time high at USD 10.51, a march through to USD 12.30 is conceivable. This is the 261 Fibonacci extension. If the DeFi sector continues to develop bullishly in the coming trading weeks, the next price target in the area of USD 15.66 moves into the investors‘ block. This is the 361 Fibonacci extension. In perspective, a march through in the direction of USD 17.73 and a maximum of USD 19.02 is also conceivable. The 461 Fibonacci extension is at this chart level.
Bearish variant (Polkadot)
If, on the other hand, the DOT price falls back below the key support at USD 7.89 and slides back into the trend channel, a renewed test of the cross support at USD 7.06 is conceivable. If this support does not hold and the old all-time high at USD 6.87 is also undercut on the daily closing price, a correction to USD 6.48 is likely. If this support is abandoned, a fall back to USD 6.15 is to be expected. From this chart level, a renewed attack attempt by the bulls is to be expected.
If the 6.15 USD is also broken downwards, a fall back to the 6.03 USD is a possible scenario. This is where the super trend and the EMA50 (orange) run. If the bulls also give up this support, a first directional decision will be made at 5.20 USD. This is the 50 Fibonacci retracement, the lower edge of the trend channel and the EMA100 (yellow). If this strong support is also undercut by the daily closing price, the upward trend would be abruptly over and a price slide to the key support at USD 4.59 would have to be planned. However, as long as the DOT price remains above USD 7.89, the bullish scenario is preferable.