Altcoin Rally Hasn’t Even Started
A strong day and performance for the altcoin market mean it should continue. Altcoins BTC pairs still extremely oversold. Superb and insane buying opportunity.
The Altcoin Rally Has Begun
Let’s face it – the entire cryptocurrency market has been doing well, but only half of it. It makes perfect sense to believe that the cryptomarket has been bullish for all of 2019. Hell, I’ve even thought that. But only one half of the cryptocurrency market has been bullish in 2019, and that’s Bitcoin. Bitcoin represents a little over 50% of the entire cryptocurrency market cap, so it stands to reason that if Bitcoin is growing, so is the rest of the market. But that is not true. With a few exceptions, nearly every single altcoin’s BTC pair has suffered, on average, -53% losses in value against Bitcoin. To make matters worse, the altcoin’s US Dollar pairs have been relatively stagnant to suffering equally large percentage losses. I find this to be an extremely bullish situation. Because while the altcoin market did get a nice bounce between yesterday and today – it hasn’t even begun.
Prediction: Altcoins Could Gain Over 200+%
I want you, the reader, to pay special attention to the chart above. That chart is the daily chart for Stellar Lumens (XLM). From the swing high of 0.00002978 on March 18th, 2019 to the swing low of 0.00001245 on May 13th, 2019 we see a 56-day route in value of XLM against Bitcoin. The orange line is Bitcoin’s price action compared to Stellar Lumens’ – you can see the clear divergence between Bitcoin’s rally and XLM’s subsequent collapse in value. Among cryptocurrencies in the top 30 market cap, XLM’s chart is about par for the course. It’s beaten down over an almost two months long period with absolutely no reprieve. I want to make something very clear:
- Bitcoin’s bear market from 2018 is over.
- The Altcoin market is still in the bear market from 2018.
This is a huge deal. Bitcoin is clearly leading the market in its recovery. And it should, Bitcoin is the ‘S&P 500’ of cryptocurrencies so its health and outlook are the most important. The longer that Bitcoin has represented strength through dip buying and continue new multimonth and 2019 highs represent health and a positive outlook. But altcoins have seen almost none of that magic. Until today. I think many traders are looking at the market and wondering if they should take profits today in case the pump was a fluke. I have thought about it myself, but now, as I write this, I’ve added too many positions.
The altcoin market has not seen any sustained bullish price action for 2019, but now it’s ready to rise. And this is what makes me so excited. Altcoins are where massive short term fortunes are made. When the altcoin market is in a bull phase, it outperforms Bitcoin by an average of 9% and the US Dollar values rises by an average of 14.5%. That is huge but its nothing compared to what the altcoins in the top 30 are capable of. 0x (ZRX) was up over 25% against the US Dollar and Bitcoin today. Zcash’s (ZEC) USD pair has been up to over 13% and its BTC pair up over 12%. Holochain’s (HOT) BTC pair has been up to over 18.5% and its USD pair up over 22.5%. And those are just some examples. Let this sink in for a minute: the same performance that Bitcoin has experienced against the US Dollar in 2019 will be exceeded by the altcoin market. The altcoin market has just started its bull run and I don’t see it topping out until mid to late June.