So far in this year, Bitcoin Cash (BCH) and Litecoin (LTC) have emerged as the ruling cryptos in the crypto world; with 383 percent and 350 percent rise respectively against the mighty U.S. Dollar. After hitting the bottom last year, the world’s largest cryptocurrency has reached new heights this year. The market analysts credit this new recovery to several factors.
After the major dip of almost eighty percent in the price, BTC has now managed to outperform the S&P 500 and the Nasdaq 100 while proving its mettle to be a solid asset in the crypto market. For instance, in the month of March, BTC showed a strong performance after it by-passed the $4,200 resistance mark. The inspired momentum was to be seen in other alt coins too. The future of BTC looks promising, yet for the immediate time to come, the market analysts suggest treading carefully.
A famous Twitter user- ‘The crypto Dog’ said-
“I could be completely wrong and get stuck sitting by myself on the sidelines, but it is my opinion we see another wipeout on alternative cryptocurrencies and BTC before we start trending onto new highs. Sitting mostly in fiat going into this week, waiting for opportunities to present themselves.”
On the flip side, some analysts think that the short-term price trend of BTC will be promising. They base their prediction on the BTC crossing the $5,400 resistance level seven days ago. On the other hand, the daily spot volume of BTC is around $270 million. At the beginning of this month, this figure was shooting to $300 million. One of the traders on Twitter said,
“Bitcoin volume keeps holding reasonable levels and showing strength. In my opinion, we are on a channel continuation range, and the next target (and hardest resistance) will be $6,000. But before, I am expecting a week or two of side range within the channel.”
Regarding the coming market performance of the crypto, there are predictions that in the coming week the crypto may not deliver a strong performance, but it will soon be soaring in the following week.
If we compare the performance of BTC from last year to the current potential, after hitting the low of $3,122 last year, BTC showed an impressive 75 percent growth in this time frame. The good effect was seen on altcoins such as LTC that showed good 300 percent profits. The rate of the cryptocurrency has surpassed 20 percent in the last month. One can say that last year’s $3,122 mark was BTC’s rock bottom at least on the medium-term basis. For the next year, around mid-year, it is predicted that BTC may see a block reward halving. This can decrease the rate by 50 percent in which BTC will be produced. Now, if the demand of the crypto increases in the future, or even if it stays alike; and the supply decreases, there can be seen an increase in the value of the crypto on the long term basis.