Bitcoin’s increasing dominance [BTC] now starting to show signs of reversal with strong gains in some mid-cap altcoins. The top earners in the top 50 altcoins with double-digit gains are NEO, IOTA, BAT, Zcash, Ox, and Augur. Additionally, popular crypto trader Benjamin Blunts (aka) is starting to see bullish swing trades in this altcoin. He tweeted,
I don’t mean to coax FOMO but A LOT of Altcoins are coming off the multi week channel. The last time I saw this happen was at BNB in 2018 before it ran a mind boggling.
Some of the prime looking ones like this are the ZRX NEO and the BAT.
Ox and BAT gains have been impressive with 26% and 22% gains on a daily basis. Right now, they were making a breakthrough from the previous range.
Ethereum Golden Cross
The gains among the top market cap altcoins, however, have been limited. Nevertheless, the resistance level is close to a break in Ethereum. The Golden Cross between the 50 and 100-Day EMA (Exponential Moving Average) is bullish.
Because the price is also looking to break out of the rising pattern. While the pattern is bearish, the uptrend may continue to target $228 and $240. However, a break to the downside would be bearish.
Weak Fundamentals, Strong Liquidity
Currently, there is a lack of narrative for altcoin growth in the COVID-19 hit economy. Nevertheless, the liquidity in Bitcoin can help in moving altcoins. Capital flows from altcoins are usually led by large cap cryptocurrencies followed by middle caps.
XRP’s dip below 0.000023 BTC has established a strong bearish outlook for the altcoin as well. XRP has been acting as the benchmark for cryptocurrencies for a long time. Market sentiment has been gloomy towards altcoins as their dominance reaches a high of 68.9%. Nevertheless, significant gains in several altcoins are starting to form the ‘narrative Crypto Trader, B.Biddles (aka) tweeted,
This cycle makes sense. $10k btc pushes new people into crypto and makes existing ones more excited. Whales put btc into alts to rinse it off, then will continue the narration of the $btc stop pump to boost all of that.
Also Read: Bitcoin Price Analysis: BTC/USD Rally Pre-Halving Hits $10K But Why Will It Return to $9K Soon?
Last but not the least, Biddles also notes that break-ups and drops from levels can be used as deviations to mislead traders. Investors should seek confirmation and execute orders patiently.