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BTC Eyes $50K Milestone: Trader Predicts Implications for Altcoins
- Bitcoin has been on a strong upward trend and is expected to reach USD $50,000 soon.
- According to Santiment, the price action is being driven by the return of high-net-worth investors to the market as hype around a spot ETF builds.
- Once Bitcoin reaches USD $50K, traders believe the coin will consolidate while altcoins begin to outperform it.
Bitcoin has been blowing up over the past few days. The seminal cryptocurrency has enjoyed a stellar year to date, but it appears the coin was saving its best move for last. Over the past seven days, BTC is up 17% and is yet to consolidate – meaning the uptrend is still steaming ahead (for now, at least). The first resistance level for BTC to break will be USD $45K (AUD $68K), but if it does, the next milestone for investors to eye off is Bitcoin’s long-anticipated USD $50K barrier (AUD $76K).
BTC Whales Return
Data analysts Santiment have noted that Bitcoin’s bullish price divergences tend to correlate with high-value Bitcoin wallets returning to the community. Essentially, this just means that high-net-worth investors are flocking back to the market and bringing the price of BTC up with their new holdings.
Since the 9th of November (one month ago), 48 wallets have returned to owning over 100 BTC after taking profits in the early stages of the current Bitcoin bull run. The value of one such “whale” wallet, as of writing this article, is around USD $4.4 million (AUD $6.71 million).
Trader Predicts an Altcoin Surge Once BTC Reaches Milestone
Well-known crypto trader and influencer, Michael van de Poppe, predicts that BTC is set to hit the USD $50K mark sooner rather than later. He believes that the hype around a spot Bitcoin ETF will push it past the barrier, before a period of consolidation (“sideways action”) and a potential bottom of around USD $36-38K (AUD $54K).
While this isn’t the most optimistic view for Bitcoin’s medium-term price action, van de Poppe thinks that this will spell good news for the new altcoin season. In a tweet yesterday, he said four simple words that make his outlook on non-BTC cryptocurrencies very clear:
Altcoins to go ballistic.
Michael van de Poppe Traditionally, altcoins perform the best when BTC’s dominance is dropping and its price action is quite steady. Van de Poppe is essentially suggesting that the market has already close to priced-in the spot ETF into Bitcoin’s value and the coin’s current ceiling is USD $48-50K. However, if he’s wrong, it’s likely Bitcoin will surge past the USD $50K mark and hold off an altcoin rally for the time being.
Author
Ben Knight
Ben Knight is a writer and editor from Melbourne with a passion for all things music and finance. He enjoys turning complex topics – especially the technical details of cryptocurrency – into digestible bites that anybody can understand. He acquired his Master’s in Writing, Editing and Publishing from RMIT in 2019 and has run his own creative writing business ever since.
