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Is Bitcoin losing interest to altcoins?

28 April 2021

temps de lecture 4 minutes

avatar-auteurManuel Valente


The price of Bitcoin is down slightly by 2% on a week. The asset is trading around €46,000 ($55,000) on April 28. But the focus this week is not so much on this correction, which is not so important at the moment. One fact is attracting more attention: Bitcoin’s share of the overall cryptocurrency market continues its inexorable fall. A fall that began earlier this year. While Bitcoin’s capitalization still represented 70% of the market in January, it was only 47% by the end of April. A figure that reflects several things.

On one hand, the market is fragmenting. Many cryptoassets have been created in recent years. While many have not seen any traction, others have managed to bring interesting services and attract investors and users. This is the case, for example, in the areas of DeFi or NFTs. Ethereum is taking advantage of this situation by reaching a new all-time high this week, around $2700. But less capitalized altcoins are attracting attention and are experiencing stronger growth in the last 2 months. Beyond projects like Aave, others like Solana or Polygon are potentially building increasingly rich ecosystems.

On the other hand, as developments and new possibilities for these altcoins multiply, Bitcoin is certainly strong but only offers an investment alternative: Bitcoins are held with a view to future value appreciation, given current economic and monetary policies. Bitcoin seems stronger in times of significant macroeconomic doubt. With the health and financial tensions receding, at least in the short term, we are still in a market phase where altcoins dominate. Of course, we will be watching closely for a possible reversal of this trend and a return of liquidity to Bitcoin, which can happen very quickly.

  • According to CoinGecko, the market capitalization regained some ground, at 2150 billion dollars against 2100 last week.
  • Bitcoin’s dominance drops further to 47.8% market share from 49% last week.
  • The best performance of the top 50 is attributed to Polygon (MATIC) with +110% over one week.

We invite you to discover our video analysis (in french and dated from April 27):

Bitcoin (BTC)

The Coinhouse recommendation :
Wait

  • Bitcoin is trading at around €46,000 ($55,000) on April 28. Last week’s decline has come to a halt, and we have seen a rebound in price since Monday. But the price remains in an area of uncertainty where taking new positions is not optimal. Indeed, the area between €46,400 and €48,000 ($56,000 and $58,000) is now acting as intermediate resistance. We will wait to see the price finish a day above $58,000 before resuming buying positions, because if the current rebound continues, the chances of making a new short-term high are high. On the other hand, if this price level rejects the price, then we could see a second phase of decline. The odds would then become high that the price would fall into the price range between €35,000 and €38,300 ($42,000 and $46,000). If this scenario takes place, we will be looking for medium/long term purchases in this area.

Ethereum (ETH)

The Coinhouse recommendation :
Buy if daily close above $2700

  • Ethereum (ETH) is much more bullish than Bitcoin in this past week, gaining 12%. The asset makes a new all-time high €2,250 ($2,700). We are not taking more partial profits in the current area. On the contrary, if the price ends a day above €2,250 ($2,700), then we will go back to buying with a view to continuing the rise in the short term and a price reaching $3000 at first. On the other hand, if a bearish reversal occurs on April 28, we will target the area between €1,470 and €1,650 ($1,770 and $2,000), which corresponds to the bottom of the bullish channel visible on the chart, for medium/long-term purchases.

Augur (REP)

The Coinhouse recommendation :
Buy

  • Augur (REP) has been in a slightly bullish channel since the beginning of the year. The asset is trading around €31.30 ($41.40) on April 28. The optimal buyout zone to play the continuation of the uptrend was located between €27.70 and €31.20 (33.40 and $37.70). However, the price is still not that far from this zone. Investors who are willing to take a little risk and want to enter a position in Augur can therefore buy. However, one should keep in mind that if the market starts to correct sharply, one will have to exit this position if Augur’s price falls below €25.80 ($31.20) again. If the rise continues for a long time, the price may very well head towards $60, in which area you will have to take partial profits.

Tops & flops of the week (top 50 marketcap)


Tops

1- Polygon (MATIC) : +110%
2- Solana (SOL) : +33%
3- PancakeSwap (CAKE) : +30%


Flops

1- VeChain (VET) : -24%
2- Ontology (ONT) : -22%
3- QTUM : -20%

All information in this article is provided for informational purposes only, although it has been compiled from reputable and reliable sources. It does not constitute an offer to buy or sell digital assets, nor does it constitute an offer to provide services in respect of digital assets, nor does it constitute advice, inducement or recommendation to deal in such digital assets. It constitutes simple information that is under the user’s absolute control. We inform you that if you choose to invest in digital assets, you must be aware of our general terms and conditions of sale (https://bit.ly/2FGW2ek) and accept the various risks listed and defined on our legal warning page (https://bit.ly/3c4sQKc)

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