The present market trend shows that Bitcoin is losing momentum in its rally and this could make it head for another downward trend.
According to a report from Bloomberg, Bitcoin (BTC) long-term buying demand is diminishing and the selling pressure may increase in the next few days as investors continue to see more potential in smaller coins.
Bloomberg reported that an eToro senior market analyst, Mati Greenspan, said that even though Bitcoin’s 20 percent gain in the last three months isn’t a poor performance, altcoins are giving people more reasons to invest in them as they add to their value massively.
“As we approach the culmination of the crypto winter, we’re actually seeing some of the altcoins delivering spectacular gains in the last few weeks. We are now in what industry insiders like to call alt-season,” Greenspan stated.
It has been reported the second largest cryptocurrency, Ethereum (ETH), saw 60 percent gain since mid-December while Litecoin (LTC) tripled it with 150 percent added value within the same period.
In the same line, some unknown coins have been reported to see massive gain in the last one month. Today’s Gazette reported that Crypto.com Chain (CRO) raised its value by 338.15% in the last one month, as MaxiMine Coin (MXM) upped its price by close to 300% gain within the same time to stand amongst top 100 coin. Cosmo Coin was most impressive among the altcoin. After Samsung partnership, the altcoin rose by 500% in the last 1 month to stay among top 50 coins.
Bitcoin (BTC), on the other hand, only added 23 percent to its value since mid-December.
Here Comes The Decline Time For Bitcoin (BTC)
Since December, the average daily gain of Bitcoin has been on a diminishing return, and observers believe the rally could be running into a wall.
Another experienced analyst, Mike McGlone, said the entire industry might be heading for a plunge with Bitcoin’s lead.
“The entire industry is ripe to resume a path to lower prices. Conditions are akin to November, just prior to the collapse. Prices are consolidating within narrowing ranges, with a few sharp bear-market rallies that appear fleeting,” McGlone said.
Following the present trend of the market, there have been speculations that Bitcoin (BTC) may continue to live under pressure if the $4,000 resistance mark is not exceeded.