Bitcoin’s price crossed the critical $18000 level recently and the weekly gain now stands at 11.44%. However, Bitcoin’s dominance is still at 66%. Since the price crossed $17000 without further resistance, the top 10 altcoins based on market capitalization have rallied. The weekly returns show gains in 9/10.
Litecoin is leading the rally with 30% weekly gains. The market capitalization has hit a 3-month high of $4,484,773,919.08. The previous 3-month high of $4,484,739,490.84 was observed on August 20, 2020.
The correction in Bitcoin’s price to $17400 after hitting $18000 earlier on November 18, 2020, may have paved way for the altcoin rally. Number one altcoin based on market capitalization – Ethereum has had a bullish week so far and the weekly gain is 6.93%.
Historically Ethereum’s correlation with Bitcoin increases during a bullish phase, and subsequently it has increased. As Bitcoin’s price is climbing, Ethereum is posting gains. The same is true for DeFi that has a high correlation with Ethereum. Despite its inverse correlation with Bitcoin, top DeFi projects have offered triple-digit gains. In the past week, AAVE has crossed 200% in gains, YFI has offered over 83% based on data from DeFiPusle. The entire TVL of DeFi is up 10.6% in the past 30 days.
Among top altcoins, Litecoin has been gathering momentum since the price hit $63. Though looked upon as the inferior alternative to Bitcoin, by many, Litecoin has enough liquidity and trade volume on spot exchanges to rally towards the Jan 2019 high of $138. These gains in altcoins are reflecting on Bitcoin’s market dominance. On-chain analysts have predicted a correction in Bitcoin’s price as it is currently trading $9600 above its fair price. Nearly 99% HODLers are IN profit and booking profits in tranches may assure profits, traders who have witnessed the 2017 rally wouldn’t agree more. A small correction in Bitcoin’s price at the current level may further pave way for Altcoins to climb higher, though the rally may be short-lived.