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Sluggish Bitcoin Price Creates Bullish Opportunities for Wider Crypto Market: Trader

Last Updated March 4, 2021 3:51 PM
Joseph Young
Last Updated March 4, 2021 3:51 PM

In the past 24 hours, the Bitcoin price has remained stable above the $4,020 mark, unable to break out above a key resistance level at $4,200. Meanwhile, a handful of crypto assets and tokens recorded gains in the range of 5 to 30 percent.

bitcoin price
The Bitcoin price continues to range-trade around the $4,000 mark. | Source: CoinMarketCap

Polymath, the best performing crypto asset on the day, recorded a 31 percent gain against the U.S. dollar, with most of the volume coming from Upbit, a major cryptocurrency exchange in South Korea.

As seen in the chart of Polymath below, most alternative cryptocurrencies and tokens remain down about 90 percent down from their all-time highs and are not near towards entering a proper accumulation phase.

polymath cryptocurrency price
Polymath, which declined 90 percent from its all-time high, is now trending back up. | Source: CoinMarketCap

But, if Bitcoin continues to show a sideways price movement in the foreseeable future above the critical $4,000 mark, some traders see crypto tokens continuing to demonstrate substantial gains.

Will Crypto Assets Outperform Bitcoin in the Coming Weeks?

In recent months, several cryptocurrencies in the likes of Cardano, Litecoin, and Binance Coin, along with small tokens, have outperformed Bitcoin by large margins.

Cardano (ADA), for instance, which recently completed the release of its 1.5 mainnet, a monumental milestone for the roadmap of the ADA protocol, increased from $0.0401 to $0.062, by more than 54 percent.

The rapid increase in the price of ADA may have been fueled by Coinbase listing rumors following the integration of Stellar Lumens (XLM) earlier this month.

Other alternative cryptocurrencies that have released important development updates or secured strategic partnerships have also increased substantially in price.

Litecoin is one of a variety of smaller cryptocurrencies benefiting from Bitcoin’s apparent slumber. | Source: Shutterstock

Litecoin, one of the best performing crypto assets in 2019, rose from $28.43 to $60.27, by around 112 percent against both Bitcoin and the U.S. dollar.

The strong upside price movement of Litecoin is said to have been triggered by its open-source developer community’s progress in integrating various privacy features into the Litecoin blockchain network.

As Charlie Lee, the creator of Litecoin, explained  in January:

“Fungibility is the only property of sound money that is missing from Bitcoin & Litecoin. Now that the scaling debate is behind us, the next battleground will be on fungibility and privacy. I am now focused on making Litecoin more fungible by adding Confidential Transactions.”

“Litecoin dev team spent hours discussing how to add Confidential Transactions. The way to do a softfork CT is very similar to doing extension blocks and extension blk may be simpler and can do a lot more. We are now also exploring doing bulletproof MimbleWimble w/ extension blks.”

According to Mayne, a cryptocurrency trader and technical analyst, as long as Bitcoin remains above the range of $3,890 to $3,930, alternative cryptocurrencies may be able to sustain their current momentum in the near-term.

“As long as BTC holds the grey blocks [$3,890 to $3,930], alternative cryptocurrencies can play. I do want to see it move away with some volume to continue being bullish. I still like $4100+ if the grey holds, if not $35xx. ETH looks worse to me and needs to regain $136.70,” the trader said .

Binance Coin Continues to Rise

Following the official announcement  of the Binance team on an update to the Binance Launchpad token sale format, the price of Binance Coin (BNB) rose by around 12.8 percent.

The Binance team stated that investors on the Binance Launchpad would be given priority based on the amount of BNB they hold.

“The next Binance Launchpad token launch will be conducted as a lottery, instead of a first-come-first-served system. The number of tickets you can claim depends on the amount of BNB you hold over a 20-day period in a Binance account leading up to the day of the lottery, up to a maximum of 5 tickets per eligible account,” said  Binance.

The change in the process of Binance Launchpad pushed up the demand for BNB in a short time frame, leading its price to increase.