I've been seeing this image thrown around in trading circles where people seem to be in the know. This appears to be a prevalent pattern in markets, and I've seen it matched precisely with recent bitcoin charts.
It's quite impressive to observe seasoned analysts predict specific movements before they happen. Many people will claim that Technical Analysis is a lot of wishful thinking. However, I'm becoming quite convinced that there are patterns to the exchange of value between all of the various currencies.
Much of it may be a self-fulfilling prophecy. There are more people today than ever, studying technical analysis, and basing their investment choices on it. If for no other reason than that, the markets do follow the trading signals.
Why is bitcoin winning?
I think that most people in Crypto-Currency understand that Bitcoin is not the most reliable technology for the future. Currently, the only crypto that is changeable for any other currency in the world.
Another factor came to mind today. I was considering which token would be good to invest in next, and I immediately thought that Bitcoin is more likely to pump harder higher and faster. If I want short-term gains, Bitcoin is a better bet. Many people expect it to reach 50k this year, at the very least it's very likely to reach 20k sooner than later. There is almost a guarantee that you can double your money if you invest in bitcoin today, and are patient enough to wait for that rise.
The ones who are looking to the future might be investing in Bitcoin Cash, or Litecoin, either of which could overtake bitcoin in the next year. It's hard to know for sure, and I can tell I have a lot more research to do.
Why is Bitcoin winning? It's a safer bet in the short term.
Speculators determine the market for now. Over time Bitcoin is getting so slow and expensive, the speculators will get sick of it, eventually. For another token to challenge bitcoin, however, it must have public awareness and be paired with the rest for trading at the major exchanges.
Which one will that be? I'd better get back to my studies.