Hi traders, let's look at altcoins.
Altcoins.
As you know we called the bottom on Bitcoin about 6 days ago...
... right when the crypto-currency successfully retested what we suspect is an accumulation zone for "whales" (notice the huge volume node on the rigth hand side of the image below).
If this analysis proves correct, the question remains whether or not we'll see Bitcoin or altcoins lead a rally.
The Case for Altcoins Leading a Recovery.
To start with, the total market cap for altcoins has now retraced from its pre-Bitcoin bubble levels.
Source: Chris Dunn's Twitter
Second, we've broken out of an inverted head and shoulders pattern on the meta-chart which could suggest altcoins have also hit a bottom.
Third, we've recently seen Ripple pop an impressive 180% against the USD which shows the market is willing to trade its capital on promising altcoins.
Furthermore, this move is reminiscent of the early 2017 altcoin market which had completely flat-lined before a few altcoins started popping.
DASH comes to mind as being one (or maybe the first) large cap coin to pop in impressive fashion back then.
Mind you, altcoins were much more illiquid back then, all this sudden influx of speculative capital caused these markets to explosively increase in value.
Soon other altcoins would follow DASH.
In retrospect, these were the first signs of a market reversal and the very beginning of what ultimately led to December 2017 Bitcoin bubble.
As altcoins were popping left and right, Bitcoin also started trading up the trend, shaking off the rejection of the Winklevoss ETF in little less than a month.
This move confounded the (back then still rational) market and led to suspicions of wash trading on Bitfinex.
In fact what was really happening was new money coming in to buy altcoins and using Bitcoin as a gateway currency.
From there, it was the beginning of the ICO bubble, once project like Brave, Bancor or Status started raising incredible amounts of money in matters of minutes the genie really was out of the bottle.
The market became flooded with ICO tokens sold to unsophisticated speculators in exchange for Ether. Poloniex ("Polo") was the Binance of its time and Ether pundits, fooled by the rel reasons behind the ETH bull run, would proclaim the flippening nigh.
But I err...
Back to today, there are certainly early signs of a bear reversal.
Bitcoin has held over $6000 steadily for months, most altcoins have flat-lined and we're seeing Ripple gaining 180% in 3 days despite a generally bearish trend.
Provided Bitcoin continues consolidating sideways until the end of year, it's possible the trading volume will shift to altcoins to play the FOMO cycles as the best altcoins projects continue securing new business and attracting more hype.
If the gains will likely not be as impressive as early 2017 (despite the bear most altcoins have retained a much larger market caps than they had back in early 2017), we could see altcoins lead a crypto rally and revitalize mainstream interest for the space.
Back to you tradersWith the Bitcoin ETF out of the way until December, will altcoins propel the next crypto rally? Let me know your thoughts traders!
Until then,
FØx.
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May the FØx be with you.
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by FØx
