Bitcoin has enjoyed a barnstorming rally since the turn of the month, surging to an impressive yearly high of $12,500 with it dragging the wider cryptocurrency market in its wake.
While there is a bearish case to consider in light of the recent rejection from $12,500, eToro market analyst Simon Peters believes the “appetite” to talk about cryptocurrencies will continue to drive it to the upside.
“If we see another push towards $12,000 and bitcoin is able to remain above that level for an extended period of time, then investors should look to $14,000 as the next resistance level.” He said.
“There is clearly an appetite to talk about the cryptoasset again, as evidenced by a recent full-page advert in the Financial Times and Grayscale’s own broadcast spots on key US news channels.”
There also seems to be plenty of focus on altcoins recently, especially in light of the rise in popularity of DeFi projects, yield farming and decentralised exchanges like Uniswap.
Bitcoin by TradingView
Cryptocurrency commentator David Derhy predicts that altcoins like Chainlink remain overvalued and that a further correction may well be on the cards in the coming days and weeks.
“Time and again we have seen altcoins fly at a million miles per hour before experiencing a retracement back the way they came. Last week was no exception, with top performing coins such as Chainlink taking a few steps back after having taken a hundred steps forward. Given that it hit $19 last week, it’s understandable that it would fall back. Despite this, I still view it as overvalued.”
He added:”I see an appropriate value as something below $8. It is clear to me that the huge run we saw over the last few weeks was because of investors getting a serious case of FOMO. We could also see a continuation of the retracement as we come out of summer and people return to their normal lives.
“Perhaps they’ll take some of the profits they’ve realised in altcoins – to reiterate, Chainlink and ADA are up 850% and 293% respectively! – and move them into other asset classes or use them on real-life expenses.”
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