Renowned analyst predicts Bitcoin to outperform altcoins in 2021

Altcoin indexes from the FTX crypto exchange have outperformed Bitcoin since the start of 2020.
A popular analyst, Twitter handle “@SmartContractor,” expects this trend to reverse in 2021.

Rajarshi Mitra Independent Analyst

Since the beginning of 2020, the small-cap, medium-cap and large-cap altcoin indexes from FTX exchange have outperformed Bitcoin, according to an earlier Bitcoinist report. However, a renowned trader and analyst (@SmartContractor) expect this trend to get reversed in 2021.

According to the analyst, Bitcoin dominance (the percentage of the crypto market made up of BTC) has the potential to surge to 86% by 2021-2022. He attributed this sentiment to Elliot Wave - a technical analysis tool that suggests that markets move in predictable cycles because of investor psychology.

While the analyst expects altcoins to underperform Bitcoin in 2021, he shares a different sentiment from a shorter-term perspective. According to a chart he shared on Twitter, Bitcoin dominance is likely to fall in October of this year. The chart suggests a retracement of Bitcoin dominance to 60%.

btc dominance with a clear breakdown and now retest as we saw in late 2019 indicating alt outperformance.

my hypothesis is btc keeps distributing or even breaks down and money flows from btc into the better performing low-mid cap alts causing a snowball effect. pic.twitter.com/YLP53prCPx
— Benjamin Blunts (@SmartContracter) June 30, 2020

Notably, this is the same trader who predicted Bitcoin would bottom at $3,200 in 2018 a few months before it did.

Author

Rajarshi Mitra

Independent Analyst

Rajarshi entered the blockchain space in 2016. He is a blockchain researcher who has worked for Blockgeeks and has done research work for several ICOs. He gets regularly invited to give talks on the blockchain technology and cryptocurrencies.

Sui extends sideways action ahead of Grayscale’s GSUI ETF launch

Sui is extending its downtrend for the second consecutive day, trading at 0.95 at the time of writing on Wednesday. The Layer-1 token is down over 16% in February and approximately 34% from the start of the year, aligning with the overall bearish sentiment across the crypto market.