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.
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.
— Benjamin Blunts (@SmartContracter) June 30, 2020
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
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.
