Total cryptocurrency market capitalization exceeded the $600 billion mark this week, dragged by an incredible bull run from Bitcoin (BTC). Similar to previous rallies, the entire cryptocurrency market followed higher with multiple digital assets hitting multi-year highs.
Fundamental analysis: What’s next for Bitcoin?
Given that Bitcoin is in the driving seat, altcoin investors are looking towards the world’s largest digital assets for clues. Analysts believe that Bitcoin is likely to correct lower before continuing its bull trend in 2021.
Miller Tabak head market strategist Matt Maley believes BTC/USD price is likely to correct in the short-term.
“There’s no question it’s been a melt-up, and it could last a little bit longer. I think on a short-term basis it could continue a little bit longer, and I’m very bullish on it on a very long-term basis. But intermediate-term, I’m a lot more concerned than I think a lot of other people. The problem is it’s now taken the weekly [relative strength] chart on bitcoin to a very, very high level,” he said.
Bitcoin price currently trades at $22,765 or 0.2% in the red.
Litecoin (LTC) breaks higher
Litecoin price is trading about 30% higher this week and it is one of the biggest beneficiaries of Bitcoin’s latest move higher. More importantly, the price action broke above the key two and a half year trend line that trades around $92.00.
A clean break higher and close above this level is likely to encourage more investors to buy LTC. The next target on the upside is June 2019 high of $146.00.
Chainlink (LINK) finds support
Unlike LTC, LINK/USD price has been dealing with a different situation. A break of the ascending trend line at $12.50 had created a short-term bearish environment that quickly ended with a return above the trend line.
This false break down may help LINK buyers in the short-term with the next target for bulls $15.50 – the descending trend line.
Nem (XEM) replicates Bitcoin move
XEM/USD price has broken above the $0.30 mark for the first time since May 2018. Since consolidating around the $0.25 handle, the price action made a series of higher daily tops that resulted in $0.3274, a new high printed today.
As seen in the chart above, the price action is now struggling to clear the 127.2% Fibonacci extension line at $0.3150. If successful, XEM buyers will target $0.35 next.
BTC/USD printed a fresh all-time high yesterday to extend its remarkable rally this year and help numerous altcoins to race higher.
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