Get your altcoins while they’re cheap
· Watch for Bitcoin to roll into the altcoin market from Friday – Sunday
· Massive discounts across the board
40% discount or more on altcoins? Yes please.
While Bitcoin continues to trudge higher and higher towards the POC of 6400, the altcoin market has bled red. And it’s not just the dollar or Bitcoin amount that has been bled from altcoins, it’s the time it has taken. Some altcoins, like Cardano for example, are in their 5th straight week of weekly closes below the open. For nearly all altcoins, they are at or near historical down periods in time and price. So what does that mean for the cryptocurrency market? Is Bitcoin going to come crashing down? Will it take the altcoin market even lower? That is certainly a scenario that could play out – but I don’t think so. In fact, I think we see pretty massive pop in the altcoin market from this Friday (May 10th, 2019) all the way through Sunday (May 12th, 2019). I think it is important to remember that Bitcoin accounts for over 50% of the entire cryptocurrency market and with the exception of some other cryptocurrencies I’ve written about, the great majority have not yet gone into the bull move that Bitcoin has. I know, that sounds weird. Bitcoin has gained so much over a short amount of time and the focus has been on Bitcoin and its growth – but we (I) have maybe forgotten the broader altcoin market, specifically, the individual altcoins.
A divergence in the Force
The image above shows two different charts. The chart on the right is the cryptocurrency market cap with Bitcoin, the chart on the left is without Bitcoin. You’ll notice that the chart on the right does not have candlesticks, instead it is a line chart. The blue line represents the cryptocurrency market cap without Bitcoin and the yellow line is the market including Bitcoin – we can see a comparison of the two against each other. For almost all of 2019 – until May 2019 – the entire market has moved at the same pace. That was until the beginning of this month (May). There is a noticeable divergence between the two charts. There are really two possibilities of what this means.
- The altcoin market is leading the entire market to a correction/pullback while Bitcoin lags behind.
- The altcoin market is experiencing a minor correction/pullback and will soon continue rising with Bitcoin.
While I do believe that we should see a pretty deep corrective move soon (in June 2019), my analysis predicts that we continue move higher, the whole market. Therefore, I believe #2 is the most likely condition we are in. I would forecast that the entire altcoin market catches massive, massive bid to the upside. When altcoins move, they move. It’s fairly common to see a bullish altcoin market show individual altcoins gaining +20-30% a day. In order for that to happen, Bitcoin certainly would need a short term correction to bring in capital to launch the altcoin market. And the altcoin market is primed for a move. Nearly all of the altcoins in the top 30 market cap are trading over -50% of their most recent highs. I’ll take that discount.