Bitcoin May Hit $50K On Altcoin ‘FUD’ Like Ethereum, Solana Gains
Bitcoin (BTC) struggled to hold above $43,000 on December 8 as the altcoin's rise put Ether (ETH) in the spotlight.
ETH, SOL will increase as Bitcoin takes equity
Data from Cointelegraph Markets Pro and TradingView showed BTC price strengthening with ETH/USD up around 7.6% in the 24-hour period.
Bitcoin hit a 19-month high of $44,490 earlier in the week, worrying market participants now that ETH and Solana (SOL) have stolen the spotlight.
$BTC Binance Spot Bids appear to be oversold
Good OI wipes here (Binance / Bybit Open Interest and Delta) pic.twitter.com/0CfnxCzL41
— Skew Δ (@52kskew) December 8, 2023
Prominent analyst Matthew Hyland looked at Bitcoin's share of the overall crypto market and described the recent uptrend as a possible “false breakout.”
Dominance coincided with BTC price increases reaching 55.26% on December 6 – the highest reading since April 2021.
“Needs to close above support to break away; currently below,” Hyland wrote in a comment on X (formerly Twitter), referring to the key 54.35% mark.
As of the time of writing this report, dominance stands below that at around 53.9 percent.
Some major altcoins took advantage of the situation, with ETH/USD hitting $2,392 before seeing a modest correction of its own on the day.
SOL/USD hit $72.88 on Bitstamp, the highest since May 2022, as investors increased bullish bets on triple-digit futures.
Commenting on the current situation, research firm Sentiment argued that fear, uncertainty and doubt, or FUD, around the altcoin breakout could ultimately help Bitcoin.
“Traders fear that #crypto markets may be in a bull trap right now,” he said on Dec. 7.
But Bitcoin may have stopped its momentum for the time being, Ethereum and altcoins are exploding again. If FUD increases, it can move $BTC to $50K.
The accompanying chart shows data covering social media activity for the phrases “bull trap” and “bear trap” referring to current crypto price action.
Keeping the faith higher.
Elsewhere, Bitcoin market participants saw encouraging signs in the current BTC price decline.
Related: Bitcoin HODL Waves: 2020 Bull Market Buyers Now Control 16% of Supply
Credible Crypto, a well-known trader known for his bullish outlook on Bitcoin in the current environment, has argued that he remains bullish ahead of the “next leg” for the biggest cryptocurrency.
Those bids are filled, then after the first bid we pop up another set of bids that are filled (second green box) and now we have a third set of bids that appear below price.
Someone is clearly hoarding $BTC on this dip in anticipation of the next leg… pic.twitter.com/qnuo1ZRRgH
— CrediBULL Crypto (@CredibleCrypto) December 8, 2023
As Cointelegraph reports, however, some believe a much bigger correction is coming, which has the potential to push the market back to $30,000 or $20,000 before hitting new all-time highs.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
