Since the beginning of the year, the vast majority of altcoins have posted increases in USD. However, since Bitcoin has increased at a faster rate, altcoins have lost BTC value, and the latter’s rate of dominance has increased. Could this mean the start of an altseason?
Bitcoin’s market dominance is currently at 69%. This has caused numerous people to call for the beginning of “altseason,” which is a term used to define a period in which most altcoins post extraordinary increases.
Ready for Altseason?
Several altcoins have already begun upward trends. REP, ETH, and BAT are close to confirming their uptrends, listed in order of how likely they are to do so.
Crypto trader @IamCryptoWolf stated that altseason has begun, suggesting that during this phase most altcoins will increase against bitcoin.
— CryptoWolf (@IamCryptoWolf) November 11, 2019
Additionally, he says that “if your alt isn’t following this trend, then you’re in the wrong alt.” He pointed out some alts which he suggests will increase.
We will look at some of them below:
The Ethereum price has been trading inside a long-term descending wedge since September 2018.
The presence of the wedge has been combined with a bullish divergence in both the RSI & MACD. Such long-term divergence often precedes a breakout.
In the short-term, the price is trading in a range between ₿0.019 and ₿0.0225.
The resistance area coincides with the resistance line of the wedge, so a breakout above it could lead to rapid price increases.
The market outlook for Ethereum looks quite bullish.
Basic Attention Token
The BAT price traded above a significant support area at 2300 satoshis since the beginning of 2018. It fell below it in May 2019.
However, the decrease could not be sustained, and BAT again increased and closed above the area, verifying it as support.
Whenever a breakdown below a significant support area cannot be sustained, it often has major bullish implications. This belief is further solidified by the bullish cross in the MACD.
In the short-term, BAT is following an ascending support line. The line is steep but does not seem unsustainable.
Additionally, while the price is facing resistance from the 200-day moving average (MA), it has broken out above the 100-day one. A breakout above the 200-day MA could trigger a rapid price increase.
Unlike the other two coins, REP has fallen to an all-time low price. It began an upward move to ₿0.02, but has since fallen to ₿0.0137.
The RSI has created an oversold value, combined with a bullish cross in the MACD. Every previous time this happened, an upward move followed.
In the short-term, the outlook does not look quite as bullish.
The price has created a massive upper wick and has failed to close above the ₿0.014 resistance.
It is now trading below this line. If it fails to move upward, it could trade in a range between these two areas.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
Images courtesy of TradingView, Twitter.
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