Home Cryptocurrency Why Bitcoin’s next breakout may not be an altcoin season signal

Why Bitcoin’s next breakout may not be an altcoin season signal

by Gordon James

Bitcoin has been one of the most talked about assets in the cryptocurrency world for the past few years. Traders, enthusiasts, enthusiasts, and others have been talking about whether or not Bitcoin is a good investment, what the future of Bitcoin looks like, or what the future of Bitcoin looks like.

It’s no secret that Bitcoin is currently in a four-year altcoin bear market, which has seen dozens of altcoin projects gain traction. This year’s ICO craze saw companies like Telegram raise over US$2.2 billion in a matter of weeks, while projects like Cardano and NEO saw their prices double after launching.

Bitcoin’s recent price surge is a good example of an altcoin season signal. The price of Bitcoin rose from a bottom of $3,100 at the beginning of January to $4,000, and then to $4,400 in early April. On 22 April, Bitcoin once again dipped to $3,300, and since then it has been rising steadily. We saw the same pattern with ethereum, ripple, and other altcoins. These patterns help predict when Bitcoin and other highly-hyped assets will rebound.. Read more about crypto alt season 2021 and let us know what you think.

The 14th. In April, bitcoin (BTC) reached an all-time high of $64,900, good for 124.5% growth by 2021. However, a correction of 27.5% followed over the next 11 days, reaching a local low of $47,000. The popular cryptocurrency fear and greed index reached a new high on the 25th. April’s lowest level in 12 months, indicating that investors are approaching extreme fear, a complete retreat from the extreme levels of greed seen during the bitcoin rally above $60,000. This downward movement of 14. April to the 25th. April wiped $200 billion from the capitalization of the altcoin market. Still, the ensuing rally could be an indication of when bitcoin will finally manage to break below $40,000. Bitcoin price in US dollars, Coinbase. Source: TradingView Altcoins showed a similar trend and reached a new high on the 22nd. It bottomed out at $850 billion in April, but rebounded on the 10th. The month of May reached another record high of $1.34 trillion. There is no guarantee that this pattern will be repeated, but there is no better source of information than the recent market itself. Altcoin market capitalization, $ billion Source: TradingView Why Bitcoin’s next breakout may not be an altcoin season signal

Cheaper is not always better

Many investors believe altcoins are superior when the price of bitcoin rises, but is this the absolute truth? If that was the case in 2021, bitcoin was the big winner in the last quarter of 2020 as it outperformed the broader market by 110%. Nevertheless, an analysis of the winners of the late April rally can provide interesting insight into what we can expect from the next rally. The best altcoins performance of the 22. From April to 9. May. Source: CoinCodex Why Bitcoin’s next breakout may not be an altcoin season signal Among the top 100 chips, the big winners were Ether Classic (ETC), Polygon (MATIC), Waves and Fantom (FTM). Either scale solutions or smart contract platforms were the winners, and industry leader Ether (ETH) also outperformed the market. 80% of the worst performing stocks were trading below $1, the exact opposite of what investors would normally expect. There is a persistent myth that cheap, nominally expensive altcoins thrive during an altcoin rally, but this is clearly not the case. The worst performance of the top 100 altcoins between 22. April and 9. May. Source: CoinCodex Why Bitcoin’s next breakout may not be an altcoin season signal

Impossible to guess the time of the market

Unfortunately, there is no way to predict when the current correction will end, and historically altcoins generally do not thrive during downward trends. This means that declaring an alt season at the first sign of bitcoin price recovery is an inaccurate strategy that could lead to a financial meltdown. The general rule of thumb to start alt season is two or three consecutive days of cumulative gains of 30% or more on small or undeveloped cryptocurrencies, including Dogecoin (DOGE), Litecoin (LTC) and Ether Classic (ETC). The views and opinions expressed herein are those of the author and do not necessarily reflect those of Cointelegraph. Every investment and every stage of trading involves risk. You should do your own research before making a decision.It’s been an interesting year for Bitcoin and other cryptocurrencies. Following a recent 13x run-up of some of the leading altcoins, many people are calling for a “crypto winter” — a period of time where prices will be flat after a sharp climb, and then crash to the bottom.. Read more about when is alt season 2021 and let us know what you think.

Frequently Asked Questions

Do Altcoins go up when Bitcoin goes up?

In the bitcoin community, there’s a certain kind of news that doesn’t get much attention. What happens when bitcoin loses value? What happens when it’s not hot? When bitcoin’s price hits the media, everyone starts talking about the “next altcoin season”. In a world obsessed by bitcoin, it can be easy to forget that the market can be influenced by many things. So, what happens when bitcoin goes up only to reverse the gains? What about when bitcoin’s price is hot? Bitcoin has been on a tear in 2017, up nearly 200% and way above its $1,000 price target. That’s great news for bulls, but, that doesn’t mean there isn’t more to come. In fact, altcoins are already surging on the news, and their gains are beginning to chase Bitcoin up the price chart. This might not be all that much of a concern for many investors—after all, the altcoins have a history of falling on gains for Bitcoin over the last five years—but it could be worrisome for altcoin traders.

What happens to Altcoins when Bitcoin Rises?

When the price of Bitcoin rises, it tells us that the cryptocurrency market is in the early stages of a bull run. Of course, the best indicator of whether Bitcoin is going to keep rising is whether other altcoins follow. The crypto world has seen a lot of momentum over the last few days, which has sent altcoins soaring. This is due to the ongoing crypto-winter, which has seen the price of Bitcoin go under $8,000, causing altcoins to rally in value against Bitcoin. This presents an interesting conundrum: if Bitcoin continues on its upward trajectory, then altcoins may not be able to maintain their recent gains, despite the fact that Bitcoin is lagging behind.

Are Altcoins better than Bitcoin?

The Bitcoin market is currently in the midst of a crypto winter. As recently predicted by BlockCon, the recent wave of pre-holiday positive press has been met with a corresponding drop in Bitcoin prices. With this year’s Bitcoin volatility at a three-year low, many have called for a bottom. However, this move appears to be a seasonal trend that is part of a larger cycle of the crypto market. The notion of an altcoin season can, at times, seem like a fool’s errand. With the marketplace flooded with new and existing digital assets, it’s sometimes difficult to determine which are the most viable. In this post, we’ll break down the altcoin season in terms of supply, trading volume, and price, to help set up a framework for determining the health and popularity of an altcoin.

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