Bitcoin rally cools: Polkadot grows 34 percent in first week of “old season”

Bitcoin dominance has probably peaked, according to Michaël van de Poppe. Now the season of the top 10 altcoins is upon us.

Bitcoin (BTC) fell below $26,000 on December 29. The impact of the looming legal battle between Ripple and the U.S. securities regulator was felt across the crypto market.

Overview of the cryptocurrency market.

BTC price falls and Coinbase halts XRP trading.

Data from Cointelegraph Markets, Coin360 and TradingView show that the BTC/USD pair hit a low of US$25,830 during Tuesday’s session.

Support at $27,000 failed to hold overnight, triggering a retest of the lower levels. Now the level around 26,000 US dollars becomes important. Over the weekend, Bitcoin Blueprint reached all-time highs of 28,400 US dollars and quickly retreated.

XRP is the fourth-largest cryptocurrency by market capitalization, and the decision by major U.S. exchange Coinbase to suspend trading starting next month left a significant mark. The coin fell to $0.23. If the SEC’s lawsuit against the token succeeds, XRP will be classified as an unlicensed security, making trading illegal.

“There will be a range after which there will most likely be another breakout in 2021,” Cointelegraph Markets analyst Michaël van de Poppe summarized in a video update Monday on bitcoin’s near-term trajectory.

Analyst sees alt season coming

Van de Poppe predicts altcoins will make big gains next. Aside from XRP, the market is already showing signs of life. Ether (ETH) climbed above $700 this week for the first time since May 2018.

Another winner on Tuesday was Polkadot (DOT). It is currently the seventh-largest token by market capitalization and has seen a 22.5 percent increase over the day. That puts it up nearly 34 percent for the week.

For Van de Poppe, the next “momentum wave” will likely take Bitcoin to $40,000 or $50,000 in 2021. But “until then, altcoins will most likely do well.”

Historical chart on bitcoin dominance.

He also pointed to a likely peak in bitcoin market cap dominance. It stands at nearly 70 percent and will likely have to give way to altcoins soon. BTC dominance usually peaks in December. A notable comparison is 2017, when Bitcoin first attempted to crack the $20,000 mark.

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