Bitcoin disappoints, but Ethereum surprises all the more. Analysts expect new highs. What this means for the crypto market.
Bitcoin falls short of expectations, fails to exceed critical level. Because it comes with Ethereum Life in Progress: The No. 2 cryptocurrency by market cap is heating up, analysts expect fresh highs in the near term. This, in turn, could drag down the entire alternative cryptocurrency market. Should we take a look at altcoins now?
Bitcoin disappoints, Ethereum surprises
Hopes were high, November should be Bitcoin’s bull month. Top analyst “PlanB” announced a price target of at least $98,000 some time ago – but things turned out differently. The key currency has not been able to show any particular strength over the past four weeks, on the contrary: BTC has suffered a loss of almost 7% since October (data from Nomics.com) and has been exposed to several times to sudden drops. As a result of the fixes, the number of lost bitcoin addresses even recently hit a monthly high of 5.62 million, according to blockchain researchers at Glassnode. Bitcoin is currently (at the time of this writing) trading at $57,000, well below expected prices. More than 17% separates the current price from the all-time high. Comments from PlanB charting guru: No forecasting model is perfect.
First failed floor model (after nailing August, September, October). No model is perfect, but this is a big miss and the first in 10 years! Aberration/black swan? I will give the Floor model 1 more month.
S2F model unaffected and on track to reach $100,000.
Beware of trolls who confuse the Floor and S2F model! https://t.co/tj6SSwSzKR
— PlanB (@100billionUSD) December 1, 2021
This is a big mistake, but the first for ten years. According to the Dutchman, Bitcoin is still on its way to $100,000 according to its stock-to-flow model. Many industry watchers and analysts have expressed similar opinions, such as Teddy Cleps: “These corrections are just noise, the general trend is and will remain bullish for the foreseeable future”, underlines the Briton. The fact that markets are acting dynamically is now also evident elsewhere. Because: While Bitcoin is treading water, many alternative cryptocurrencies, called altcoins, are gearing up for a rally. In the first row: Ethereum. The second cryptocurrency is currently benefiting from the hype surrounding metaverse tokens such as The Sandbox (SAND), Decentraland (MANA), and Axie Infinity (AXS). They are all based on the Ethereum blockchain – and thus inspire the ETH course with their own success at the same time. As asset manager Grayscale comments in a new analysis (“The Metaverse, Web 3.0 Virtual Cloud Economies”), the Metaverse and related projects could become a $1 trillion industry. An evolution that can already be seen in the ETH course.
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“ETH prepares for departure”
The smart contract platform has been heating up for a week, with growth of more than 11%. Even in the past 24 hours, ETH has led the large-cap cryptocurrencies in terms of performance: from $4,384, ETH bulls have driven the asset to $4,767. New local highs and currently up over 8% on the day. Additionally: Due to the surge, Ethereum is very close to the previous all-time high of $4,859. If Ethereum manages to get back to these record prices, further gains are likely. Highly quoted crypto analyst Adrian Zduńczyk, for example, thinks it will happen. More than 592,000 people follow him on Twitter, under his pseudonym “CRYPTO₿IRB”. He says: Ethereum is about to go parabolic.
“ETH is preparing for departure. The Conservative breakout target is $6,200.
According to Zduńczyk, a new all-time high for Ethereum could have a massive impact on most other cryptocurrencies. The technical chartist – like many of his peers – thinks a so-called altcoin season is a possibility in the near future. This signifies a bull run phase in which alternative cryptocurrencies appreciate tremendously while Bitcoin stagnates. Zduńczyk: “It seems that we are about to reach the final stage regarding the books that will be written. When exactly this phase will occur, however, remains a matter of speculation. Dutch professional trader Michaël van de Poppe, for example, still expects altcoins to fall in December. He does not expect new course jumps before January: “Patience is required, but the next descent will be fun”, he concludes.
What is Ethereum anyway?
Cryptocurrency Ethereum is comparable to the even better known Bitcoin, but is not just a digital means of payment. On the contrary, Ethereum is also a platform that offers other possibilities, for example the conclusion of so-called smart contracts.
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Processes, such as bank transfers, can be tied to specific events or conditions. For example, when certain goods arrive at the recipient, the counter value could be automatically transferred to the seller’s wallet.
In addition to smart contracts, decentralized applications can also be run on the Ethereum platform, called Dapps. These are accessible to any user with an Ethereum wallet that manages the currency. DApps are often financial applications, a classic is “Uniswap”, which allows members of the network to exchange tokens with each other. But there are also computer games like the space game Dark Forest.
What is ether?
This is the name of the real digital payment method on the Ethereum platform. The amount is limited, a maximum of 18 million new ethers hit the market every year. Ether Coins are created or mined through Digital Mining. Similar to Bitcoin, users provide computational capacity for transaction encryption and can receive Ether in return.
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