Altcoins have started slowly pumping on the market. Today Lite coin, surged 14% with most of the other top altcoins posting 3% – 6% gains. In this article I want to go over my opinion on the postponed altcoin market, and why altcoins are about to pop.
Nothing should be considered as investment or financial advice. Enjoy the ride.
Altcoin Market Delay
The altcoin market seems to have been put on hold. At least it seems that way due to Bitcoins recent surge in Price. The positive side of things is that the BTC movement has provided a drastic increase in investor confidence. Although, the market is completely different from ever before even when compared to only 2 years ago, 2017. This leaves little room for reflection on previous market cycles.
Traditionally, there is a common assumption that Bitcoin will pump and the altcoins will follow a month or two afterward. The reason this has not happened yet across the market is because of one simple thing; Bitcoin has not stopped pumping. If you notice, when Bitcoin settled at $8,000 for a few weeks, the alts started to accumulate pressure.
Since Bitcoin surged again to $9,000 and up to almost $14,000, investors lost the confidence to hedge back into alts. At this point, it seems Bitcoin should maintain a healthy price around $11,000 for several weeks and create sideways trading. After this period, investors will feel comfortable shifting back into alts creating the altcoin market. This will partially be driven by traders getting bored and seeking more gains.
Altcoins Loaded For Surge
Since Bitcoin has gone up so much, there is plenty of money circulating throughout the market. Remember, hodlers have been accumulating altcoins since early 2018. This has been cutting the supply slowly but surely, and will serve to propel the price of most alts once new money from Bitcoin gains re-enters.
The Price of most altcoins should rise anywhere from 40% – 60% in general. These gains would barely be a drop in the bucket from most atlcoin’s all time highs. In addition, Bitcoin, Bitcoin Cash, and Bitcoin SV, should all bleed out some of their newly inflated market caps during the pump.
In particular, Ethereum should easily push through the $400 layer and hopefully find resistance around $450 in this next market run. Ripple on the other hand will hopefully revisit the $0.75 range. Both Ethereum and Ripple have huge potential to drive this initial altcoin frenzy. If either of these coins doea not ignite the fire, then some project will and reap most of the benefit. We have already seen this with Chainlink that has surged to astounding levels over a few news announcements.
In an alternative case, Bitcoin could retrace further downward slowly. What this would cause is an effective bleed throughout the market which would ultimately drive the altcoin prices even lower. In this scenario, we could be looking at 10% – 20% drop in altcoin prices as Bitcoin came back from recent euphoria levels.
After the Altcoin Market
After the altcoin surge, the market should trade sideways. Once prices settle, there will need to be a new analysis of the rising sentiment. Most likely, the market will then have a small correction around 10% – 15% throughout Q3 and follow that with end of year highs due to Eth 2.0 an Bitcoin Halving right around the corner.
Following the alternative case, we would still anticipate the market would rise at the beginning of next year.