Traders Turn Bullish on Altcoins as Bitcoin Selloff Continues
Are altcoins coming back to life? Some of the top crypto traders seem to think so. | Image: shutterstock.com
- Bitcoin’s price action has given traders very little to be excited about.
- The chop between $10,000 to $8,000 is giving traders reason to anticipate an altcoin season.
- One margin trader has even gone on the record and said that alt season has already begun.
The number one cryptocurrency has been in a slow bleed ever since it pumped above $10,000 on Oct. 26. Bulls had hoped that support of around $8,600 would stop the selloff but so far, the bears have the upper hand. While the absence of bullish momentum may frustrate bitcoin maximalists, the chop is a boon to altcoin traders.
After months of waiting, the altcoin season (alt season) may be finally upon us. Even I find it hard to believe but many crypto tokens are printing reversal patterns. They look primed for a huge disbelief rally.
Altcoins Gearing for a Strong Push as Bitcoin Dominance Fades
For a proper alt season to begin, bitcoin dominance must suffer a massive waterfall event. In other words, capital must flow into other crypto tokens while bitcoin stays relatively stagnant.
This is exactly the scenario that trader Paddy Stash is seeing. Bitcoin dominance is losing key support of 68% . A confirmed move below this level will likely trigger an altcoin renaissance.
Paddy Stash is not alone to have this view. Beastlorion is also expecting a sharp move down from the index.
So far, the index is following Beastlorion’s game plan. If this holds true, bitcoin dominance can potentially plummet to 48%. This would give altcoins 52% of the total crypto market capitalization. That’s a massive 20% pump from current levels.
This is why traders are salivating over the prospects of altcoins popping. For instance, trader Nik Patel sees many crypto tokens breaking out of multi-month consolidations. The herd will be led by Ethereum and EOS. Both cryptocurrencies have bullish market structures in their USD and BTC base pairs.
Margin Trader: ‘Alt season Has Started’
To say that the altcoin season has already begun is a bold comment to make. Nevertheless, trader Crypto Krillin is adamant that cryptocurrency’s most profitable period is well underway. The analyst told CCN.com,
Yes, altseason has started unless BTC starts to pump hard straight to an all-time high. But even then, altcoin charts have started a macro reversal. It’s undeniable.
Trader Max echoes Crypto Krillin’s sentiment. The analyst said,
The outlook for alts, with some reservation to bitcoin’s price action, look primed for upside on a macro scale. This structure has been forming for months and recent price action has done nothing but strengthen the probability of this. Nothing is certain but trading wise, there are setups that I need to take.
Finally, Scott Melker, also known as The Wolf of All Streets, stated an undeniable fact. The trader pointed out that altcoins
have been rallying for months already.
This is particularly true. For instance, EOS is up nearly 30% against bitcoin from the September bottom of 3,060 satoshis. The same is true for Ethereum, also up by around 30% against the number one cryptocurrency.
These rallies have been largely ignored by most traders mainly because many have been numbed by altcoin pumps. The length of the bear market has taken its toll. Fortunately, it appears that the end of the brutal bear winter might be in sight.
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.
