various cryptocurrency on table

The Bitcoin price has broken its all-time high of $64,854 today. It is now at $66,760 at the time of writing. What is in store for Bitcoin as well as the alt-coin market?

Bitcoin

The strong volume that supported the break of previous highs from April indicates that this move will continue. I think $70k will be tested before a pullback to $63k-65k. One thing that may have helped fuel the recent move is the Bitcoin ETF. Released yesterday on the NYSE, the ProShares Bitcoin Strategy ETF, (NYSE:BITO), is linked to futures contracts for the digital currency. Bitcoins market cap is now $1.25T.

Alt-coins

What does this recent surge in price, along with the BITO ETF and also clarity on regulations mean for alt-coins? Ethereum (ETH) has broken back above $4k and above high it had hit in September, before it fell in price that month. It still has a little way to go before it breaks all-time highs of $4372. I can see this price breaking within the next day or so. Cardano (ADA) has been in consolidation for since late September, with the daily chart forming a wedge. The strong volume today has seen the crypto rise off the bottom support. ADA is, however, still 30% off all-time highs, much further off than Ethereum is. Ripple (XRP) has been making high highs and lows, a good uptrend in price. But XRP is in the same situation as ADA, over 40% down from all-time highs.

I think Ethereum will have the best continuation, as it’s the largest by market cap behind Bitcoin. We should see previous highs beat, which would be a further 7% increase in price. The rest of the alt-coins, such as XRP and ADA, will usually do better when Bitcoin trades sideways, or consolidates. I think by year end, both of these two will be at new highs, ADA well above $3 and XRP above $2.

Risks

Risks regarding regulations have eased in recent weeks as US have stated they will never ban crypto. The ETF release has also helped regain confidence in this matter. Risks that still apply is the volatility experienced in the crypto market. To avoid downside risk, try and aim to buy pullbacks for ETH and BTC after this current push and buy alt-coins like ADA, and DOT when they break out of consolidation.

Overall

Overall, we are very bullish going into the close of the year for crypto. Seeing the Bitcoin price at $80k would not be a surprise for the start of 2022. There is money to be made on the long side in both the larger and smaller cryptos.

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