Are Altcoins Ready for the New Season?Oct 15, 2019
OK, so bitcoin, the first and central cryptocurrency, is continuing to consolidate in a very narrow price range, which clearly points towards the uncertainty in the marketplace. As of right now, the BTC/USDT pair is trading at around the 8,300 mark, and it should be noted that over the past several weeks bitcoin dominance index has been going down. As a result of its decline, we can now see a significant growth of altcoins. For example, in the last 7 days BNB has gained more than 18%, with XRP and XLM having gained 6.3% and 4.7% respectively over the same time period.
FUMGO СЕО Yehor Shyshov noticed that a similar situation occurred in January 2016, when altcoins also shot up. He said, “when bitcoin hits the “rock bottom” and starts its slow recovery, this always creates the best conditions for altcoins. Therefore, even a slight strengthening of BTC may now trigger a new wave of growth for major altcoins.”
This opinion seems to be shared by other market players. For instance, CryptoBull compared the current bitcoin and altcoin price trends with the situation of 2017. Back then, the altcoin season started after the first major BTC crash, from $1,300 to $900. Today’s scenario bears a close resemblance to those days.
Consequently, the emergence of a fairly strong bullish fundamental factor may trigger a prolonged wave of growth for bitcoin and key altcoins. There are plenty of reasons for the upwards movement to pick up: starting with another BTC hardfork to the slowing down of the world’s economy, etc., which will facilitate the demand for cryptocurrencies. Make no mistake about it, it was precisely the risks associated with the trade war between the US and China that caused the wave of growth in the crypto market this year, and this is why the bullish scenario remains the most likely right now.
BTC is currently stuck in a narrow flat of $7,800-8, 800, and the market is waiting for resolution. The indicators are signaling growth, but for the price to resume its ascend it is necessary to wait for the breach of the upper boundary of the level of resistance which formed at the $8,800 mark on the daily graph.