- Bitcoin and Altcoin market could breakout next week to grab a bullish rally
- Analysts in the crypto industry are observed being bullish for the cryptocurrency market
- Bitcoin correlates with the traditional United States stock market
Bitcoin and the altcoins have seen mainstream attention since the beginning of this year. Due to the Chinese crackdown, the entire cryptocurrency market faced turbulence and still remained highly volatile. However, after achieving a new all-time high last Uptober, analysts in the industry are observed being bullish this Moonvember. Notably, the trading volume of the leading crypto asset continued to decline over the past few weeks. On the other hand, altcoins have been found rising to achieve new highs over the same period. In contrast, where the total market cap of Bitcoins plunged by 2%, Ethereum and Solana’s market capitalization surged by 1.5% and 17%, respectively.
ANALYSTS EXPECTS A BULLISH MONTH FOR BITCOIN AND ALTCOINS
According to an active speculator in the industry, they are jumping from one coin to another, trying to ride the small waves. According to Alex Kuptsikevich, an analyst at FxPro, it seems a positive-sum game if the tide is turning. Indeed, the overall market cap of the industry is continuing to rise.
Some analysts consider that if BTC’s price crosses the level of $64k, it will soon achieve a new all-time high. Historically, there have been analysts who have observed that there always has been a slight delayed positive correlation between the traditional market and digital market. Hence, the factors could help the prices this month go upwards, achieving new ATH.
BULLISH BUT RISKY DUE TO VOLATILITY
The average funding rate of BTC or the cost of holding long positions in the future market remains positive. The aforementioned factor also shows some bullish signals to traders. According to Arcane Research, the persistent positive finding rates suggest that demand for long exposure remains high in the digital asset market. However, the relatively low long liquidation volumes in the cryptosphere show that traders are reckless with leverage now. Still, Arcane Research warned that high volatility is risky if the entire market turns lower.
BTC CORRELATES WITH THE TRADITIONAL STOCKS MARKET
The correlation of BTC with the US stocks market has continued to soar over the past month. The data suggest that the risk appetite of investors is way robust. On the other hand, demand for government bonds has been observed to decline. Such plunges could cause a spike in inflation, and economic growth will be slowed down. Notably, similar stats were kept back in 2019, when the cryptocurrency bear market stabilized and monetary policy became more accomodating, which intensified. At the time, such measures also had benefited the assets stocks and cryptocurrency world.
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