- The developer of the Proof of Stake consensus protocol predicts an Altcoin season in the short term.
- The Altcoin segment intervenes significantly in the most explosive moments of upward trends.
- The ETH/BTC pair leads the change in leadership, not without major obstacles in the short and medium-term.
Two influential opinion leaders stand out with statements in which they argue for a new Altcoin season.
Sunny King, the creator of the consensus protocol Proof of Stake (PoS), has stated in a recent interview that Bitcoin has a vital role as a reference value in the crypto-verse, but that the highest growth potential is in the Altcoin segment.
For its part, @TradeEscobar highlights in its Twitter thread the sharp increases of NEO and TRX, which have improved their ratings by 83% and 40% respectively. This cryptocurrencies’ trader argues that the vast majority of Altcoins are in a phase of accumulation but directly in full bullish phase against Bitcoin.
In recent weeks, the substantial improvements in the Bitcoin rating of projects such as STORM, Stellar-Lumens, BAT, IOTA and many more have made headlines.
Bitcoin’s dominance over Altcoins reached its zenith at the beginning of September when it hit a market capitalization share of 73.4%. Since then, the decline has been continuous.
Looking at the chart of the relationship between Bitcoin and Altcoins (BTC dominance), you can see how after leaving behind the September high, Bitcoin begins to recede. It now stands at 68.34 after losing the support of the simple average of 50 periods.
The simple average of 200 periods now stands at 66.29 and appears as a clear objective in the short term. For the medium term, the area of most significant price congestion is at level 59 for the first quarter of 2020.
Ethereum’s case deserves separate consideration because of the importance of the asset. The most powerful of the Altcoins projects, Ethereum, and its interrelationship marks the way for the rest of the projects.
The Altcoin segment plays an important leadership role in the Crypto segment’s bullish machinery.
The significant price increase in 2017, which sent Bitcoin to historic highs, experienced its most explosive moments from the moment that Altcoins took the lead in the market.
This market behavior has its logic since once investors have taken their positions in Bitcoin, money begins to cascade among those assets that have lagged; in this case, the Altcoin segment.
Since the historic highs of December 2017, the price of ETH/BTC has been subject to a strong bearish trend represented by a trendline that represents the target to beat.
The bearish trend line from the price peaks is currently at the price level of 0.02595, which represents a 21% gain over the current spot price at 0.0214. The big obstacle in the way is the SMA200 at 0.0233, 8.79% above the current price.
First Published at Altcoin segment: bullish war drums – FXStreet