Category Archives: Altcoin
Past Crypto Cycle Highlights Altcoin Underperformance, But Perfect Storm is Coming – newsBTC
Although altcoins have vastly outperformed Bitcoin in recent weeks, the asset class is still trailing far behind the first-ever crypto asset when compared to past cycles.
And if history repeats, Bitcoin is likely to trade sideways over the next few months, making for the perfect environment for altcoins to shine and steal the limelight once again.
Despite 11 years in existence, cryptocurrencies are still a relatively young financial asset class.
Even with such a small sample size to analyze, top crypto analysts often look to past crypto market cycles to attempt to make sense of current price action taking place across Bitcoin and altcoins.
Related Reading | Altcoins Break Out Against Bitcoin After Six Months Of Sideways
After a historic rally kicking off the new year, resulting in the leading cryptocurrency by market cap growing by over 40% year to date, and its altcoin cousins outperforming BTC by a large margin, its clear a new bull market is near.
However, past cycles suggest that altcoins are severely undervalued against Bitcoin compared to historical performance.
When comparing past cycles, altcoin dominance was far higher than current levels when compared against Bitcoin price models within the same timeframe.
This suggests that altcoins have a lot of catching up to do across the asset class.
This should come as no surprise, considering that most altcoins dropped over 90% from the all-time high valuations, and have spent two full years in a bear market they are only now escaping from.
But this all could change soon if past price action plays out the same way during the current crypto market cycle.
And while past performance isnt an indicator of future success, history does often repeat itself, and markets are incredibly cyclical.
According to past cycles, Bitcoin is likely to trade sideways from here, for the next few months leading up to the Bitcoin halving.
If this is the case, sideways trading is often considered the ideal environment for altcoins to grow.
The theory is that while Bitcoin remains stagnant, some crypto traders get bored with the price action and begin diverting capital toward underperforming altcoins.
The low liquidity in these assets causes prices to rise quickly, and more and more investors sell their Bitcoin into altcoins to take advantage of the additional gains.
Related Reading | Analyst: Recent Bitcoin Rally Is Only the Start, Retail Will Take it to New Highs
And even though altcoin sentiment being positive always leads to Bitcoin growth, further selling of Bitcoin into alts can keep the first-ever cryptocurrency trading sideways for an extended period of time, even if new fiat is flowing in.
Regardless of where that fiat ends up Bitcoin, Ethereum, XRP, Tezos, or others it all benefits the greater crypto market and pushes it closer towards the next major bull run.
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Past Crypto Cycle Highlights Altcoin Underperformance, But Perfect Storm is Coming - newsBTC
Crypto Strategists: This Forgotten Altcoin Just Left the Launch Pad and Is Ready to Take Flight – The Daily Hodl
Two cryptocurrency analysts say an altcoin that fell to the wayside in the long crypto winter may be ready to pop.
TraderXO says NEO could break out and track the rise of Ethereum in 2020. ETH began the year at $130.47 and is now $270.74 at time of publishing an increase of 107%.
NEO, a rival smart contracts platform, is often referred to as the Chinese Ethereum. It started 2019 at $8.72 and is currently up 75% year-to-date, at $15.29.
In order to gain momentum, TradeXO says NEO will first have to break through a line of resistance at $16.78.
NEO Is it a sleeping giant? Certainly looking forward to picking some up on significant enough pullback if the opportunity arises.
Will be following this closely for any substantial announcements in 2020.
The altcoin is also on the radar of analyst and founder of Texas West Capital, Scott Melker, who says NEO just formed a bullish inverse head and shoulders pattern.
Holy mother. Confirmed breakout of an inverse head and shoulders that has existed for almost 10 months.
This should pull a 50% move up just on that pattern. Expecting to see NEO take flight.
Despite the bullish outlook, Melker warns NEO could continue to fall lower in the short term along with the rest of the crypto market, which is in the red at time of publishing.
The altcoin market at large is typically at the whim of Bitcoins price movements, and it remains to be seen if BTC really is in the midst of another long-term bull run. The leading cryptocurrency has stalled after breaking through $10,000 last weekend and surging past $10,400 on Wednesday. Its currently down 2.66% at $9,986.
Featured Image: Shutterstock/IM_VISUALS
Bitcoin (BTC) Dominance Pullback Crashing Altcoins Is This End of Altcoin Season? – U.Today
Since the Bitcoin price fell into decline on Sunday, breaking below the $10,000 level, it hasnow reached the $9,639 zone, as perdata from CoinMarketCap.
Altcoins have started losing value against the major cryptocurrency, with some of the top ten coins crashing by more than 10 percent earlier today.
In todays video, crypto trader and analyst known as The Moon shares his take on whether this is the end of the alt season. The trader looks into the issue and offers his take on it.
In his video, The Moon trader looks at a chart, in which you can see the recent pullback of the BTC dominance. Along with this, altcoins were growing. However, now,BTC dominance has found support and is bouncing back up.
At the same time, altcoins have started to decline, the trader points out.
As an example, the trader shared an Ethereum chart, saying that the second-largest currency beganto decline, once the BTC dominance went on an upward retracement.
If Ethereum manages to break above the crucial resistance line, then ETH will officially enter a new trading range, the trader says.
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The Moon reckons it is hard to saywhether altcoins will continue declining or if they are going to reverse and head upwards in the short term.
However, he believes that holding Bitcoin is always less risky than sticking to altcoins. 80 percent of a crypto investors portfolio should be Bitcoin, The Moon states.
Although, he admits that sometimes altcoins can give an investor 100% or even 200% percent returns within the short term (a few weeks or months). It is very hard to achieve that with Bitcoin. For this reason, The Moon admits that it is a good idea to take advantage of an altcoin season, but still rely on BTC in the long term.
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Bitcoin (BTC) Dominance Pullback Crashing Altcoins Is This End of Altcoin Season? - U.Today
Why TRON, XRP, and Cardano (ADA) just plunged 12% in a severe altcoin correction – CryptoSlate
Major alternative cryptocurrencies (altcoins) including TRON, XRP, and Cardano (ADA) dropped by more than 12 percent against the USD on the day. The move follows a strong 50 to 90 percent upsurge within a span of two months.
In the past two weeks, while the Bitcoin price increased by 14 percent, TRON, XRP, and Cardano surged by around 30 percent on average.
As the Bitcoin price reclaimed $10,000, which is widely considered to be a psychological level by traders, the cryptocurrency market started to rebound. Traders started to become more confident in the bullish market structure, taking the market cap of the entire cryptocurrency market from $256 billion to $307 billion in about ten days.
The market quickly became overbought, leading most technical indicators like the relative strength index (RSI) and other momentum oscillators to show signs of an imminent pullback.
In an upward trend, altcoins tend to front-run bitcoin and surge faster than the dominant cryptocurrency. In the latest bull trend, for instance, the price of Ethereum started to rise first with bitcoin following the price trend of Ethereum.
During a bearish trend or a pullback, altcoins tend to depend on bitcoin for short-term price movements.
Although the bitcoin price briefly surged past $10,000 on the day immediately after the opening of the CME bitcoin futures market, it demonstrated a steep sell-off right after it. Consequently, altcoins like XRP, TRON, and Cardano pulled back, recording significant volatility in a short period.
Josh Rager, a cryptocurrency technical analyst, said that after the daily close earlier today, the bitcoin price was at a crucial support level at $9,800.
As Bitcoin struggled to hold $9,800 and corrected to the $9,600s, even major altcoins with relatively high liquidity in the likes of XRP plummeted with little to no reaction from buyers.
Rager noted:
Bullish nice 4 hr & daily close to end Sunday, bounced at key area of $9800 (HVN). Bearish still forming lower highs/lower lows on intraday charts, CME price pullback from $10,075. less premium Still needs to hold $9800+ on HTF or well still visit $9,300 to $9,550.
If the Bitcoin price rebounds in the short-term, altcoins are likely to be the biggest beneficiaries of it.
However, due to extremely high funding rates, XRP fell by 22 percent within 24 hours, causing havoc in the market.
A funding rate on margin trading platforms like BitMEX and Binance Futures refers to a system that lets long holders or short sellers pay each other based on the state of the market.
If there are more longs in the market, long holders need to pay short-sellers a certain percentage of their position every eight hours to bring balance in the market. In the case of XRP and Ethereum, funding rates exceed 0.1 percent, which means long holders need to pay short-sellers a significant amount of money to leave their positions open.
That places pressure on long holders to adjust or close their positions, causing a deeper correction in the market.
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Why TRON, XRP, and Cardano (ADA) just plunged 12% in a severe altcoin correction - CryptoSlate
Bitcoin SV Dips 33% amid Altcoin Season Bust and More Losses are Coming – newsBTC
The altcoin market is bleeding red and Bitcoin SV (BSV) is its most injured pawn.
The fifth-largest cryptocurrency on Monday slipped by circa 10 percent to establish a new intraday low at $256.66. The move downhill came as a part of a larger bearish correction that started last week when BSV was trading at $382.70.
Bitcoin SV loosening its grip on bulls | Source: TradingView.com, Coinbase
As usual, traders used the said local top for profit-taking and the price dipped by 33 percent so far into the retracement. But on a larger scale, BSV was trading about 44 percent lower from its all-time high at $458, established in January 2020. That left traders under the impression that the coin could be under the risks of further bearish crackdowns.
Part of the reason why Bitcoin SV slipped overwhelmingly can be laid on the altcoin market bust.
Ethereum, XRP, Bitcoin Cash, Litecoin and more than 5,000 other crypto assets fell in tandem to register a $23.84 billion crash in the last three days. A similar move ensued in the bitcoin-denominated markets. Bitcoin SV, for instance, lost 23.86 percent of its valuation against the top cryptocurrency.
As a result, Bitcoin regained part of its lost dominance over the cryptocurrency market albeit slipping itself by 7.76 percent within the same timeframe. The cryptocurrencys market cap against rival altcoins surged from 61.98 percent on Friday to 65.449 percent on Monday, showing that an otherwise overbought Bitcoin SV was under the risks of facing major plunges.
Early signs of a bullish reversal on Bitcoin Dominance. Altcoins will be destroyed if this gets back up to 68 70% again, said market analyst Elixium.
Technicals aside, other catalysts also played an influential role in driving BSV prices down.
Earlier last week, for instance, the number of unconfirmed transactions on Bitcoin SV blockchain spiked dramatically, leading to its networks mempool rising by 400 times. In retrospect, miners were unable to pick up transactions owing to unfound network errors that ended up straining the Bitcoin SV blockchain.
The mempool spike followed a grave issue faced two weeks ago by the Bitcoin SV miners. So it appears, the blockchain was struggling to differentiate between its own nodes and the ones that belonged to its forked cousin Bitcoin Cash. The error ended up linking many of BSV nodes to that of Bitcoin Cash.
Low trading volumes and thin order books also make BSV prone to crashing further. According to Simon Peters, a research analyst at eToro, the cryptocurrencys 300 percent upside move in January looks unsustainable against poor trade metrics. Therefore, it could be due to a deep plunge.
As of now, Bitcoin SV is targeting $241 as its next downside target.
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Bitcoin SV Dips 33% amid Altcoin Season Bust and More Losses are Coming - newsBTC
Bit-comment: Bitcoin does not keep up with the altcoin”s rebound – MENAFN.COM
(MENAFN - FxPro) On the crypto market, we are witnessing quite a rare phenomenon when altcoins bounce back 5-18% after the slump, while Bitcoin barely started to grow. At the moment, the benchmark cryptocurrency is trading at around $9,800. The minimum point was at $9,500, where Bitcoin got the support of the buyers. However, it was not so impressive, as BTC failed to return above the threshold $10K level.
Crypto Fear & Greed Index rose by four points over the last 24 hours, though it remains in the "neutral" zone. The RSI halted its decline from the overbought territory. So far, the altcoin season is still in question.
Judging by the sharp jump in volatility, market participants suggest that all this may be an attempt of "whales" to squeeze out the weakest traders. Besides, the negative sentiment may have been affected by the statement of US Treasury Secretary Mnuchin on significant changes in the regulation of the crypto sector.
The FxPro Analyst Team
MENAFN1802202001560000ID1099720387
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Bit-comment: Bitcoin does not keep up with the altcoin''s rebound - MENAFN.COM
Here’s Why Even as a Bitcoiner you Shouldn’t Ignore Ethereum – Bitcoinist
Ethereum (ETH) is on a rising spree in 2020 w.r.t price. But its network is also established and increasingly proving quite significant.
BTC blogger, Sylvain Saurel, looked at the reasons Ethereum is here to stay, and why Bitcoiners should not diss the project outright. Saurel believes Bitcoin (BTC) remains unique, but there are also good reasons to start owning at least some ETH tokens.
In 2020, Ethereum already has a large and well-established ecosystem, with Maker (MKR) alone showing the potential for decentralized finance. This gives a boost to ETH, as the combined market capitalization of all projects is even more significant, and competes with the market cap of BTC.
Saurel also believes ETH prices reflect the overall sentiment of the entire altcoin market and serve as a proxy for overall altcoin investment.
By buying and then hodling ETH from Ethereum, you ensure that you benefit from the significant potential success of many Altcoins based on Ethereum, he explained.
Instead of being spread to many illiquid altcoins, owning ETH may be a way to get exposed to any unpredictable altcoin season gains.
ETH is also a leader in the distributed app space, and thus, owning the token gives exposure to the growth in that sector. Granted, growth has been relatively slow, and there is yet to be a killer app to compete in the mainstream space. But owning ETH is a tool to potentially benefit from the growth of unexpected winners in the dApp space.
The dApps market is expected to grow in the future. The fact that Ethereum is a hegemonic leader in this field is another reason why you should seriously consider Ethereum for the future, wrote Saurel.
A special class of distributed apps, the Defi space, is also highly promising. The space depends entirely on the Ethereum blockchain for its tokens and smart contracts. ETH as an asset is also highly important, as collateral and in pairings within decentralized exchanges. Growing activity in that space may regenerate demand for ETH, which fell after the ICO craze washed away.
Defi is still a young and risky sector, as seen by the latest exploits in smart contract logic, which led to fast gains for the attacker. But Saurel believes the centrality of ETH is a good reason to add the asset to ones portfolio.
The upcoming ETH 2.0 ecosystem, which will allow the staking of coins, becomes the last reason to avoid ETH just for the sake of being a Bitcoin maximalist. Since its ICO and the initial stages of trading, ETH has established itself as one of the most powerful and long-running projects in the crypto space and has overcome multiple setbacks. Now standing at $260.63, ETH is also reigniting interest as once again entering a growth stage.
What do you think of the potential of ETH to fulfill uses beyond Bitcoin? Share your thoughts in the comments section below!
Images via Shutterstock, Twitter: @ssaurel
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Here's Why Even as a Bitcoiner you Shouldn't Ignore Ethereum - Bitcoinist
Heres Why Litecoin Is Leading The Rise Of Altcoin Dominance – ZyCrypto
Altcoins have started this year on a strong note. The cryptocurrency market itself also started very well with most of the digital coins performing as expected with regards to major developments expected to happen. This, however, does not take away the fact that relatively smaller coins in the market are putting up a fight for a place at the top.
Many altcoins, including Tron, Ethereum, Stellar Lumens, Cardano, XRP, are all having a strong year regardless of the loss most endured within the last 48 hours. However, one altcoin which has been a stand out in this journey for supremacy is Litecoin.
The digital coin was tipped by many experts to break the $100 barrier within the first five months of the year. After its anticipated halving in August 2019 which was expected to have a positive effect on its price backfired, the coin lost almost 60% of its value.
LTC started the year, trading at $41.12 and gradually made its way to its current price which is $76.95 (at the time of the writing). Litecoin just like the other altcoins, also saw its price decline over the last 48 hours, losing about 5.28% over that course. The coin started the day hovering around the $76 mark and within 3 hours of trade, rose to reach $80.51 mark, before plummeting to its current price. This unstable price action within the past few days according to experts doesnt demonstrate a firm bull run which Litecoin was projected to undertake, even though the crypto market is in reds.
Litecoin has taken over the tourism-related field and is now one of the widely accepted digital currency by several travel and accommodation service providers. This development highlights Litecoins potential as a payment method, and further strengthens its underlying design which is to facilitate payments globally. Litecoins adoption rate against merchants is also high, a development that may be potentially behind the projected bullish trend for the digital coin.
The Litecoin Foundation also partnered with Cred a few weeks ago, in a deal that will offer Cred customers the option to lock their funds with the provider to earn a 10% percent rate annually. Cred, a global cryptocurrency-based borrowing, and the lending firm will now allow LTC holders to lend their digital coins at very lucrative rates, and in so doing increase the number of LTC holdings as well as investors.
The year might be early to make conclusions on this wildly volatile market but Litecoin with its current performance and several developments to back it might finally put up the performance investors have always wanted.
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Heres Why Litecoin Is Leading The Rise Of Altcoin Dominance - ZyCrypto
Ethereum max out till date – BTC Wires
Feb 19, 2020 06:00 UTC
| Updated:
Feb 19, 2020 at 06:00 UTC
By Rajat Gaur
We all know there has been a lot of interesting debacles that are arising in the cryptocurrency space, so is simultaneously the profits each of the cryptocurrencies are earning. There are a lot of factors that make the cryptocurrencies to reach their max payout and one of the most underlying reasons is the market adaptability to new concepts like the blockchain technology.
The company is back on its feet
There are a lot of companies that invested a fortune and luckily they have been so far happy with the investments they have made. So must be the investors who had their investment rants on the most famous altcoin known to the crypto space, Ethereum.
It has been raining cats and dogs in the profit margins of Ethereum as the altcoin influencer marks the most successful trading in the year start. Such a glorious trade point is definitely showing signs of sunny days ahead for the altcoin.
The magic numbers
The trade value grossing at $273.77 on the scale boosted up the overall average weekly gain to a significant 25% and above percentage. The cause and effect phenomenon came into the picture as the value of BTC took the down road to 61%. The magic numbers do not stop there, the daily trading value of Ethereum crossed the $26 million mark making it a huge record for the year.
The other competitive altcoin tried to catch up with the pace but ended up catching the trail left behind Ethereum. This means that there are a lot of head points that may serve the favor of altcoin.
Other Altcoins that are existent in the space try to make the best out of what is left. With huge valuations expected to churn out from the trade sheets, there is a huge probability that the market for such altcoins are sure in for a joy ride.
Looking at the current stats of Ethereums performance, it is little more than amusing to know that the altcoin would be free out of the dry spell for a few months from now as well. The utility factor of the coin will see a fervent increase to make sure that there is steady utilisation factor of the coin in the transactions that they make. This all will result in the bounce back trajectory path of the coin after all that it has been through.
Steadiness in the performance graph also opens market for new investors and that directly boosts the performance of the Ethereum 2.0 testnet which will be a good base for establishing solid grounds.
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Ethereum max out till date - BTC Wires
Veteran Analyst Warns of XRP Crash to $0.20 as Price Stumbles – Ethereum World News
As Bitcoin has collapsed over the past day, so too has Ripples XRP.
Since peaking at around $0.34 last week on the back of FOMO buying, the popular altcoin, the third-largest cryptocurrency by market capitalization, has plunged as low as $0.26 a drop of around 25%. Ouch.
While the cryptocurrency has already plunged heavy, underperforming Bitcoins relatively measly 10% loss, a top analyst is fearing that more pain is on the horizon.
Legendary commodities trader Peter Brandt recently remarked that XRP is in the midst of forming a potentially extremely bearish chart pattern: a head and shoulders top, marked by two shoulder-like price action and a blow-off top.
Brandt remarked that should this textbook pattern play out, the cryptocurrency could fall to $0.2071 around 23% lower than the current market price around $0.27 for that is where the measured move for this pattern lies.
Should XRP fall this low, that would mean bulls would be put back to the drawing board, for the cryptocurrency would have broken through the crucial daily and weekly support around $0.27.
While a strong drop in something like Ethereum would normally be accompanied by a plunge in Bitcoin, XRP can move independently of the market leader due to certain market dynamics; indeed, in 2019, the altcoin fell 50% against the U.S. dollar, dramatically underperforming Bitcoins 94% yearly performance.
That means for this bearish pattern to unfold for XRP, it isnt a necessity for Bitcoin to fall that much lower than it is now.
While Brandt is warning (not predicting) of a potential crash in the altcoin, there are some sure the asset remains bullish, citing a confluence of technical analysis trends.
Financial Survivalism, the trader who called Bitcoins surge to $9,200 by mid-January weeks in advance, almost nailing the timing and magnitude of the move, said that XRP could be forming a medium-term bull trend.
In a tweet published Tuesday, he posted the below chart, showing that he expects the price of the cryptocurrency to rocket towards $0.70 160% above the current $0.27 price in the coming months.
Financial Survivalism backed this lofty forecast by looking to a few factors on the long-term chart of the cryptocurrency: the Heiken Ashi candles have turned green on a weekly basis, implying reversal, the cryptocurrency has turned a key horizontal into support, and it has broken above a falling wedge pattern, adding to the bull case.
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Veteran Analyst Warns of XRP Crash to $0.20 as Price Stumbles - Ethereum World News