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Analyst: Ethereum Could Hit $400 If Correction Does Not Come Soon

Most of the attention and news has been about Bitcoin in recent weeks. Its doubling in price since the beginning of April has put Bitcoin back in the headlines of mainstream media. Little attention has been given to Ethereum, though, which could also be on track to double in price if a correction does not happen soon.

ETH at 2019 High

Ethereum
has just reached its highest price of 2019 at $285. The 7 percent surge on the
day has sent the world’s second largest crypto currency to a nine month high.
The last time ETH was over $300 was in early September 2018.

Ethereum price 24 hours – Coinmarketcap.com

Daily volume has nudged up a little and is still higher than it was during the peak in January last year. The difference now is that retail traders and investors are stockpiling Ethereum rather than companies conducting ICOs. A correction is needed to re-balance the markets but there is a chance it may not come and one analyst predicts a surge to $400 if it doesn’t.

Trader and analyst ‘Credible Crypto’ has taken a look at the
charts noticing that things are due to pull back somewhat;

“Bulls beware, it might almost be time to be a bear. I will not short this, but I will take partial profits on a portion of spot ETH longs that I picked up sub $200. If this doesn’t play out, we are headed straight to $350 and then $400.”

According to the chart the fifth leg of the Elliot Wave could take Ethereum to just below $300. After this move things could rapidly fall back to the $200 zone in an almighty correction. Many analysts have already spoken of a 30 percent correction for Bitcoin and this would be Ethereum’s equivalent.

If it doesn’t materialize, ETH prices could push back to $400 in a move mirroring the one in June 2017 when it did exactly that in a couple of days.  

Altcoins Up as Bitcoin Dominance Dwindles

Bitcoin market dominance is falling back towards 55 percent. This is still pretty high for the year but some traders, such as Josh Rager, thinks that a fall below 50 percent will herald the beginning of ‘altseason’ which could come as soon as next month.

“% of $BTC dominance continues to slowly move down over the past 3 days. This is good for alts … Nowhere near alt season yet (needs to break below 50% dominance) but good for trade setups,”

Several altcoins are on a roll today, one of them is Bitcoin
SV which has been manipulated by fake news out of Chinese social media
platforms, driving the herd of Asian traders to jump on it in a frenzy of fomo.
As a result it has doubled in price, surging into the top ten and flipping
Tether, XLM, ADA, and TRX.

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As Novo Expects Bitcoin To Kill Other Crypto Assets, Altseason Still Expected

bitcoin

Crypto Legend Novogratz Expects Bitcoin To Outperform

Over the past six weeks, Bitcoin dominance has surged from 53% to 58% (according to TradingView), catching many traders with their pants down. This comes as investors and analysts such as Fundstrat Global Advisors’ Thomas Lee, who frequents CNBC to convey his thoughts on cryptocurrency, have hinted that the fabled “altseason” in on the horizon.

Yet, prolific cryptocurrency investor Mike Novogratz, a former Goldman Sachs partner and hotshot on Wall Street, says that there might not be a fully-fledged altseason this market cycle. Responding to Ran NeuNer of CNBC Africa, who recently asked if days during which altcoins pump 40% or more are inbound, Novogratz stated that he doesn’t expect for the mania of 2017 and early-2018 to be repeated. Novogratz, who has become adamant in his belief that Bitcoin’s primary value proposition is as a digital gold/store of value, states that the market is getting smarter, meaning that Bitcoin will likely outperform its ilk in the coming expected bull run.

Indeed, over the past few weeks and months, the cryptocurrency market en-masse has shown an underlying bias towards BTC. In May, Grayscale Investments, a key branch of the New York-based crypto conglomerate Digital Currency Group, released its “Digital Asset Investment Report” for Q1 of 2019. According to the report, Grayscale pulled in over $42.7 million over the first three months of this year. This isn’t a hefty sum per se, what makes this notable is that over 95% of the $42.7 million, 73% of which came from institutional investors, went right to the firm’s Bitcoin Trust, easily its most popular vehicle.

Altseason May Still Be On The Horizon

Some, however, are certain that an altseason may just be around the corner, despite the aforementioned comment. Bravado’s Bitcoin Jack recently pointed out that the share that altcoins have of the cryptocurrency market could soon break out, and potentially move to early-2018 levels.

Binance has also suggested that an altseason is well on its way. The firm’s research division recently pointed out that altcoins have already begun a rebound, altcoins experienced a collapse against BTC seen prior to altseasons, and that the month of May has historically been a great time for other crypto assets to gain on Bitcoin. But will this be the case this time?

Title Image Courtesy of Daniel Pascoa 

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Textbook Trend Reveals Altseason May Resume, Bitcoin (BTC) To Underperform

Altseason Could Continue From Here

Over the past week, altcoins (crypto assets other than Bitcoin) have begun to slip. In fact, as of the time of writing this, Bitcoin dominance is sitting at a casual 54.4%, the highest this figure has read since mid-December, when BTC was in the midst of the capitulation to the low $3,000s. This recent altcoin action is starkly contrasted by the jaw-dropping rallies we saw in digital assets such as Litecoin, Binance Coin, Tezos, and EOS over the past few months.

But a number of analysts claim that altseason, which is when the cryptocurrency market sees its leader, BTC, underperform drastically, may soon continue.

In a chart posted earlier this week, Galaxy, a self-proclaimed “cryptocurrency accumulation machine,” claimed that the market capitalization of all digital assets, minus Bitcoin, is currently looking like a trend pinpointed by Thomas Bulkowski, a prominent technical analyst. The trend, for those unaware, is a falling wedge, which is often seen as a good sign for markets. Bulkwoski’s studies claim that the market capitalization currently has a 68% chance of breaking to the upside, meaning an altseason, and a chance to move 32% higher if the breakout does occur.

Tom Lee of Fundstrat has also suggested that altseason likely will come to fruition in the near future. The Fundstrat head of research took to Twitter last week to reveal that one of the “pre-conditions” for historical altcoin rallies is coming to life in the current cycle. This precursor, for those unaware, is a drop in the correlation between the crypto asset class at large and Bitcoin itself.

Per Lee’s chart, which cites data from Bloomberg, CoinMarketCap, and his own firm, a drop in the rolling 90-day correlation between the two subsets has preceded three altseasons — Mar 2016, early-2017, and late-2017/early-2018. An altseason, as defined by Fundstrat, is when a large percentage of altcoins in the “liquid universe” rally by over 200% in a short period of time.

Not So Fast, Bitcoin Remains Strong

Other analysts, however, have suggested that for the time being, and with the recent news regarding Bitfinex’s and Tether’s holding company, iFinex, in mind, BTC will outperform.

Inmortal Technique, an industry commentator and trader, recently suggested that Bitcoin’s market dominance has broken past a declining trendline, all while altcoins’ market dominance has remained trapped under a key resistance, indicating that BTC currently has the upper hand.

Speaking to Forbes, Mati Greenspan, the crypto-friendly markets analyst at eToro, has also opined that BTC could continue to outperform. He simply stated that “Altseason is over,” meaning that Bitcoin could soon see an influx of buying pressure from investors looking to liquidate their altcoin positions. 


Photo by Austin Distel on Unsplash

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Altseason Already Over? Analysts Suggest Bitcoin (BTC) Will Outperform In Short-Term

Analysts Suggests Altseason Is (Already) Over

All eyes may be on Bitcoin (BTC), but other crypto assets have seen their fair share of gains since the start of 2019, sparking calls that what is known as “altseason” is here. This would seemingly be the case. Binance Coin recently surpassed its all-time high, in a brutal bear market no less, as Litecoin has rallied by over 200% since December’s low. Cardano, Ethereum, Tezos, and Basic Attention Token are among other prominent cryptocurrencies that have also seen jaw-dropping gains in the past 90 days.

And as Fundstrat’s Tom Lee explains, one of the “pre-conditions” for historical altcoin rallies has recently come to life in the current cycle. This precursor, for those unaware, is a drop in the correlation between the crypto asset class at large and Bitcoin itself.

Per Lee’s chart (seen below), which cites data from Bloomberg, CoinMarketCap, and his own firm, a drop in the rolling 90-day correlation between the two subsets has preceded three altseasons — Mar 2016, early-2017, and late-2017/early-2018. An altseason, as defined by Fundstrat, is when a large percentage of altcoins in the “liquid universe” rally by over 200% in a short period of time.

Funnily enough, however, the (pre-)altseason might already be over. On Wednesday, Bitcoin dominance hit 54.4%, the highest this figure has read since mid-December, when BTC was in the midst of the capitulation to the low $3,000s. This resurgence in Bitcoin’s market share came as a result of BTC’s ability to outperform smaller digital assets over the past week. For instance, BTC has lost 1.5% in the past 24 hours, but XRP, EOS, Stellar Lumens (XLM), and Tezos (XTZ) have all lost more than 5% of their value in the same time frame. And analysts expect for Bitcoin to outperform in the near future.

Bitcoin May Soon Outperform

Inmortal Technique, an industry commentator and trader, recently suggested that Bitcoin’s market dominance has broken past a declining trendline, all while altcoins’ market dominance has remained trap under a key resistance, indicating that BTC currently has the upper hand.

Speaking to Forbes, Mati Greenspan, the crypto-friendly markets analyst at eToro, has also suggested that BTC could continue to outperform. He simply stated that “Altseason is over,” meaning that Bitcoin could soon see an influx of buying pressure from investors looking to liquidate their altcoin positions. Jeff Dorman, the chief investment officer of Arca, echoed this:

“If you look back to early April, when BTC rose 25% in a day, every other digital asset rose as well. But, since that day, BTC has remained well bid while every other asset has slowly begun to decline due to a rotation out of ‘altcoins’ and into BTC.”

And according to AskMeHowToShort, a well-followed yet controversial analyst, this rotation out of altcoins might just be “bullish for Bitcoin.”


Photo by Andre Benz on Unsplash

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Altseason? Analyst Claims Sticking With Bitcoin (BTC) May Be Safer For Now

The Case For A Crypto Asset Rally

Fundstrat’s prominent head of research, Tom Lee, recently took to Twitter to remark that one of the “pre-conditions” for historical altcoin rallies is coming to life in the current cycle. This precursor, for those unaware, is a drop in the correlation between the crypto asset class at large and Bitcoin (BTC) itself.

Per Lee’s chart (seen above), a strong drop in the rolling 90-day correlation between the two subsets has preceded three altseasons — Mar 2016, early-2017, and late-2017/early-2018. An altseason, as defined by Fundstrat, is when a large percentage of altcoins in the “liquid universe” rally by over 200% in a few months’ time.

With preliminary indicators predicting a further collapse in the correlation between digital assets and BTC, an altseason might already be well underway. If you take a brief gander at CoinMarketCap or other analytics providers, this would seemingly be the case.

Binance Coin (BNB) recently surpassed its all-time high, in a brutal bear market no less, as the launch of the exchange’s in-house chain and decentralized exchange have been a boon for its price. Litecoin, Cardano, and Basic Attention Token are among other prominent cryptocurrencies that have also seen jaw-dropping gains in the past 90 days, as they push higher as a result of fundamental and technical factors. But, this uptick might just be the tip of the iceberg.

As Lee explains, historical altseasons averaged gains of 1,100%. He adds that Fundstrat expects for the next rally in cryptocurrencies to “deliver returns similar to the 2017/2018 cycles.” Fundstrat isn’t the only entity claiming that crypto assets other than Bitcoin could outperform BTC in the coming months.

Per previous reports from Ethereum World News, Twitter commentator Galaxy explained that with Bitcoin’s market dominance rally being the weakest so far, he wouldn’t be surprised to see BTC’s share of the cumulative value of cryptocurrencies fall under 30%.

Analyst Begs To Differ, Keeps Portfolio Bitcoin-Heavy

Another prominent analyst, however, claims that altcoins might not be ready to push higher against Bitcoin just yet. In a recent tweet, The Crypto Dog, who sports over 100,000 followers on Twitter, claimed that as altcoins fell faster and further than Bitcoin (-2.5% compared to -1%) in Sunday’s drawdown, he is now less interested in other cryptocurrencies. He explains that he will now be skewing his portfolio heavier to BTC, as he expects for the market leader to begin to outperform altcoins in this time in this indecisive time.

Photo by Mark Finn on Unsplash

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