Altseason on the Horizon?
For some reason or another, crypto analysts have become extremely divided over whether or not there will be a fabled “altseason”.
This has presumably been made evidently apparent from Ethereum World News’ last report on the matter, during which we reported that analyst Benjamin Blunts notes that Bitcoin dominance may be poised to plunge, implying at least a brief “altseason”. He explained that per his use of Elliot Wave analysis, the one-hour Bitcoin dominance chart is currently in a five-wave decline, implying a move lower in the coming days.
Per prominent Bitcoin bull Tuur Demeester though, the outperformance of altcoins against BTC might not come as soon as Benjamin expects. The Adamant Capital partner, who somewhat called the bottom of the cryptocurrency market and 2017’s rally, wrote in a recent tweet that cryptocurrencies will “rally again as retail re-enters this market.” Demeester expounds that mom & pop investors have yet to flood into the cryptocurrency market as they did in 2017 to pick up the then-so-called “cheap, hot altcoins”.
Maybe Not, Say Crypto Analysts
But some have gone even a step further. Advisor to Dharma and other projects, Joe McCann argued in an extensive Twitter thread that “trading anything but Bitcoin” is “meaningless” and that “your altcoins are going to be worthless”, at this point in the cryptocurrency market’s cycle anyway.
Firstly, McCann notes that the strength that Bitcoin dominance has seen is being “radically underestimated”, especially in regards to how this statistic is represented in terms of the performance of altcoins, “even large caps” like Ethereum and XRP. He writes that since Bitcoin dominance broke past 63%, which one acted as a resistance, “it has been off to the races and altcoins have been crushed”. What he seems to be arguing that momentum in Bitcoin should allow it to continue to gain relative value against its smaller counterparts.
Secondly, the analyst argues that once institutions foray into the space, they are most likely “only” going to buy Bitcoin and interact with that ecosystem, not deal with the relatively-complicated crypto assets.
And lastly, McCann notes that the Ethereum-to-Bitcoin chart is looking extremely harrowing, noting that there is no sign that a bottom is in for this crypto trading pair. Ouch.
He isn’t the only one not holding his breath for an altseason. Willy Woo noted that one of the “alt-season indicators” he follows — a bullish cross of the 365-day moving average of the altcoin market cap against Bitcoin — is still a ways off from coming to fruition.
Photo by Jonathan Sharp on Unsplash
