The rise in Bitcoin [BTC] dominance is now beginning to show signs of reversal with strong rise in a few mid-cap altcoins. The top gainers in the top 50 altcoins with double digit gains have been NEO, IOTA, BAT, Zcash, Ox, and Augur. Moreover, popular crypto trader, Benjamin Blunts (alias) is beginning to see bullish swing trade in these altcoins. He tweeted,
I don’t mean to induce FOMO but ALOT of alts are breaking out of multi week channels. The last time I saw this happen was on BNB in 2018 before it did a mind boggling run.
Some off the top of my head looking primed like this are ZRX NEO and BAT.
The increase in Ox and BAT have been particularly impressive with a 26% and 22% rise on a daily scale. Currently, they are establishing a break-out from prior ranges.
Ethereum Golden Cross
The rise among the top market cap altcoins, however, has been limited. Nevertheless, the resistance levels are close to a break-out in Ethereum. The golden cross between the 50 and 100-Day EMA (Exponential Moving Average) is bullish.
As the price is also looking to break-out from the ascending wedge pattern. While the pattern is bearish, the uptrend could continue to target $228 and $240. However, a break-out to the downside would be bearish.
Weak Fundamentals, Strong Liquidity
Presently, there is a lack of narrative for the growth of altcoins in a COVID-19 hit economy. Nevertheless, the liquidity in the Bitcoin can help in driving the altcoins. The flow of capital from altcoins has usually been led by large-cap cryptocurrencies followed by mid-cap.
The fall in XRP below 0.000023 BTC has been forming a strong bearish outlook for the altcoins as well. XRP has acted as a benchmark for cryptocurrencies for a long time. The market sentiments have been sour towards altcoins as the dominance reached a high of 68.9%. Nevertheless, significant gains in a few altcoins is beginning to form a new ‘narrative.’ Crypto trader, B.Biddles (alias) tweeted,
This cycle makes a ton of sense. $10k btc is pushing new people into crypto and getting existing people more excited. Whales are putting btc into alts to rinse them, then will resume the narrative of $btc halvening pump to increase all of it.
Last but not the least, Biddles also notes that break-ups and downs from levels can be used a deviation to misguide traders. Investors must look for confirmation and execute orders patiently.
What according to you is the probability of a new alt-season? Please share your views with us.