8 August 2021: If there was any doubt left about Bitcoin, those doubts should now be put to rest. Amongst the ample calls for a $20,000 USD or lower Bitcoin price target, with market sentiment at a rock bottom extreme fear, Bitcoin was poised to do one thing: reverse and head higher once again. This article will explore Bitcoin and some big market cap alt coins in their price trajectories.
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The Bull is FINALLY Back
Back on the 21st of July, it appeared like Bitcoin may actually break below $30,000 USD and head lower, officially signaling the end of the bull run. That never materialized. That dip under the pivotal $30,000 mark was met with an immediate major reversal that has brought Bitcoin back to the $45,000 level. This is nearly a 50% increase up from the bottom.
From current levels, Bitcoin may either continue higher upwards to test the $50,000 USD level - a major break point in the previous correction - or have a small correction lower to back-test the previous level of support at around $43,000 USD. Either way, the upward price channel would hold. For those that bought under the $40,000 USD mark, more gains should be coming barring a major market break event.
To reiterate the above point, in the graphic above shows the two potential short term price action scenarios for Bitcoin. Additionally, in a more long term focus, a trendline can be drawn from the bottom of the connection up along this current breakout. Based on the current trajectory, Bitcoin should comfortably break through the $50,000 USD mark by the end of August (roughly 3 weeks time) and turn that mark from major resistance into major support. It is important to note this is more or less speculation based on current market sentiment and short term price action.
Overall, the fundamentals on Bitcoin are strengthening each day. As the rest of the cryptocurrency market begins to awaken once again, positive press met with positive price action will more than likely be met with the return of numerous smaller, short term holders within the space.
Alt Coins
The alt coin market has actually been rallying with the Bitcoin move up, especially in regards to Ethereum (ETH). Taking a look at the Ethereum price chart, ETH has actually made a nearly 90% move up from the lows back on the 20th of July. Since then, Ethereum has rallied hard, partially due to returning positivity in the cryptocurrency market and partially due to the recent major upgrade of EIP-1559.
Chainlink (LINK)
While overall Chainlink has had a lesser recovery than other major protocols, in recent days & weeks, Chainlink has begun to build some relatively strong momentum back upward. With the return to $24 USD, if Chainlink can maintain current price action, a retest of the $30 level could be on the short term horizon. With the abundant use cases of LINK being of the most scalable and trusted oracles in crypto, LINK is not going anywhere in the foreseeable future.
Polygon (MATIC)
A newer coin to our list, Polygon, with their acquisition of the Ethereum network for future scaling purposes (related to ETH2.0) has seen a meteoric rise in both popularity and functionality. While the previous mega rally of MATIC was a marvelous sight to see, we are looking for more controlled, sustainable, long term growth that sees Polygon rise at a steady pace, similar to LINK.
With the numerous use cases of Polygon, the implementation of the Polygon network for Ethereum, and the tons of dApps built on the network (including the likes of Aave, 1Inch, Sushiswap, and more), Polygon should see a nice bull run over the medium to long term based on current market trends.
Polygon DApps
Ampleforth (AMPL)
The last coin covered this week is Ampleforth. A lot has been happening with the protocol recently, most of which has been centered around the changes to the Aave governance. With the major success of AMPL's launch onto Aave for borrowing/lending, some additional changes are currently being discussed. A vote happening now would increase the APY on Aave to just over 10,000%, helping to facilitate demand for more lenders to offer AMPL during positive rebasing.
While this article is not going to touch on the immediate price action of AMPL (due to the real volatility being in supply), it is very important to look at the rebasing to determine in which direction supply has been going (and when you can maximize your returns on AMPL).
After a long period of negative rebasing, mostly due to the major market correction the cryptocurrency class faced the previous few months, Ampleforth is finally entering an uptrend in demand, helping to push the supply back upwards into neutral / positive rebasing territory once again. Additionally, the increases in inflation can also be seen in the protocol's price target. The price of a 2019 inflation-adjusted US Dollar has been slowly increasing. It now sits at $1.051.
Summary
Overall, the momentum seems to be finally switching for a number of high level projects within crypto. While current economic sentiment is rather uncertain combined with the recent rumors of potential governmental regulation of cryptocurrencies (notably within currently debated US legislation), the short to medium term future of cryptocurrencies should be studied extensively for any direct influences on the market. That said, for truly long term outlooks, there is no reason to avoid purchasing any of the coins listed in this article, especially in regards to Bitcoin & Ethereum.
As always, conduct your own due diligence on your favorite projects before choosing to invest. Best of luck this week!
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