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Throughout 2019, Bitcoin has been mostly bullish, rising as much as 350% from trough to peak, all while the altcoin market has continued to bleed out further.

However, according to one expert crypto analyst, long-term charts are suggesting that the total altcoin market has bottomed. Bitcoin dominance charts also back up the theory, indicating that altcoins will not only soon explode in value, but they’ll outperform the leading crypto by market cap in the short term.

Altcoin Bottom Is In, Claims Crypto Analyst

At the start of the year, both Bitcoin and altcoins like Ethereum, Ripple, and Litecoin, appeared to have bottomed out and began a steady ascent higher. But come April 2019, the two crypto asset types diverged, and Bitcoin went on to have a parabolic rally, all while an altcoin apocalypse unfolded across the crypto market.

Related Reading | List of Crypto All-Time High Prices Shows How Far Market Must Recover 

The more Bitcoin rose in value, the more altcoin holders – many of which are still holding bags that are down as much as 99% from their previous all-time high – began selling off alts so they could FOMO buy into Bitcoin and not miss out on what could end up being the greatest bull run in the asset’s history and possibly even the history of finance.

But even Bitcoin’s rally topped out, putting the market in a state of confusion. Now that the first-ever cryptocurrency is once again taking a breather, though, it may be the calm before the storm for altcoins that are likely to have finally bottomed, and about to grow substantially in value, outperforming Bitcoin in the very near future.

The idea comes from crypto analyst Crypto Thies, who has shared a chart focusing on the total crypto market cap – sans Bitcoin – and says that recent Heikin-Ashi candles demonstrate a low-volatility phase near its conclusion.

On the total altcoin market chart, indicators are turning upward, volume is rising, and the most recent green candles, according to the analyst, are like a “taut rope before it snaps.” When it snaps, fireworks are expected.

Bitcoin Dominance Backs Up Alt Bottom Theory

The analyst further backs up this theory that the “alt bottom is in” with a chart depicting Bitcoin dominance. Thies says that BTC dominance is no longer looking as bullish as it once was, and a head and shoulders is forming on the weekly relative strength index.

Related Reading | Published Author and Altcoin Trader Highlights 5 Crypto Set to Outshine Bitcoin

Head and shoulders formations typically represent the early signs of a trend reversal, suggesting that altcoins will soon trend higher and outperform Bitcoin for a sustained period, allowing many of the altcoins still in the gutter to make up for lost ground.

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Tony Spilotro , 2019-11-13 17:00:25

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.

While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

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Nick Chong , 2019-11-10 12:00:38

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