This is an interesting question that will keep many of us busy over the holidays. What is the rest of the year going to look like, and what will the cryptocurrency markets look like in the new year?

Let’s look at the current situation:

That’s right, Bitcoin passed $20,000 and is now trading in uncharted territories. Experienced traders will probably use FIB levels to trade BTC right now, however, I like to keep things basic with support and resistance levels.

A little earlier I answered this question: Will instituational investors start buying Bitcoin and Altcoins?

It’s clear institutional investors are coming in, which changes the dynamics of the markets a lot. What’s happening right now cannot be compared to 2017, as we’re talking about complete different types of investors/speculators and we have yet to see retail investors come back into the markets.

Institutional investors are seeing the big picture:

• Bitcoin is scarce and will only get scarcer throughout the years as more institutional investors buy up BTC, traditional investors come in and another block halving will follow to further decrease increased circ. supply
• Bitcoin is a store of value, and it’s becoming more clear it’s here to stay. Many companies/people see this as a hedge against the current financial system (which in my opinion will see a huge downfall within the next 2–3 years)

What do I think will happen?

I kept saying that if we were to break we’d see $22,000 the same day. I didn’t however expect it’d surge further and reach almost $24,000 right after breaking the ATH.

I wouldn’t be surprised if we see BTC test the $20,000 level again before heading further upwards. As BTC is now in uncharted territory we’re kind of entering a new speculative phase. That being said, I’d love to think we can reach $50,000 before the end of the summer 2021. This will however depend a lot on the overall worldwide economic situation, increased interest from institutional investors and retail investors FOMOing in the markets again.

What will altcoins do?

Personally, I’m a huge believer of altcoins. I am however aware traditional investors are the ones to mainly invest in BTC whereas retail investors mainly invest in altcoins.

That said, I’d love to see BTC.Dominance reject here and retrace towards 49–58% over the course of the next few months. However, if BTC is to continue the surge upwards towards $25,000–30,000, we will see altcoins bleed further with a bitcoin dominance of 68% and in case of an outbreak there 75% could well be possible.

Again, this completely depends on the markets. I however would like to think value will flow into projects that see real adoption, growth, and revenue. That said, I’ve stacked up on various altcoins for my portfolio and took a 20% BTC / 80% altcoin position.

I hope these thoughts are helpful for you. As always, be sure to apply proper risk management and decide for yourself: do I want to speculate short-term and trade? Or do I want to apply the dollar-cost average strategy and simply hold my BTC/altcoins long-term?

Good luck!

This post is for informative purposes only, I’m not a financial advisor and I currently do have a position in BTC and Altcoins. I have not been paid for this post, this post is out of personal interest.