The altcoin market cap may be bottoming out. One trader suggests that alternative cryptos are mirroring bitcoin’s 2011-12 cycle.
Many people got rich during the 2017 crypto bull market. I’m not just talking about those who timed bitcoin before it exploded to $20,000. There were speculators who traded altcoins and waited for them to skyrocket in value against bitcoin. Then, these traders took profits just before the crypto bear market hit.
Imagine multiplying your initial investment between 10x and 100x in a matter of weeks. For instance, Ripple pulled off an astronomical surge of 1,148,300% against BTC between December 2017 and January 2018. Speculators have been chasing similar types of gains since but to no avail.
After a multi-year bear market, one trader thinks altcoins are ready to reward HODLers with life-changing gains.
After a two-year bear winter, it appears that the altcoin market cap is showing signs of bottoming out. Trader Crypto Rampage took to Twitter to share his bullish view on alts.
According to the trader, the entire altcoin market is transitioning from depression to a disbelief rally based on the market cycle psychology chart. The altcoin market cap is also printing a large double bottom pattern. This is one of the most reliable patterns in technical analysis indicating that a trend reversal is on the horizon.
Lastly, the altcoin market cap just printed the largest volume since 2017 on the weekly chart. This signals that the smart money investors are already scaling in.
If you’re a position trader, these are very encouraging signals.
Crypto Rampage isn’t the only analyst bullish on the altcoin market cap. A pseudonymous account named Highaltitudeinv also thinks that altcoins are ready for a big push. The trader said that alts are following the footsteps of bitcoin’s early cycle. The analyst also noted the key similarities between the two:
I must say that the similarities are undeniable.
When bitcoin bottomed out in late 2011, the king of cryptocurrencies launched a rampaging bull market as it skyrocketed to $1,163 in November 2013. That’s a mind-boggling increase of over 52,000% in two years. If altcoins indeed mirror bitcoin’s 2011-12 cycle, then huge gains may follow.
You’ll know it’s on once the altcoin market cap clears resistance of $140 billion. That would signal the breakout from the double bottom pattern and likely indicate the start of a bull market.
Disclaimer: The above should not be considered trading advice from CCN.com. The writer owns bitcoin and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.