Data shows that BTC has only closed Q2 in the red twice and both times the decline was less than 10%. If history repeats itself, Bitcoin investors may witness sharp gains in the next six months.
Altcoins have also participated in the current bull run and this has propelled the total crypto market capitalization to $1.99 trillion which is just short of the $2 trillion milestone.
Let’s take a look at some of the top-performing tokens to see which may continue to rally higher in the short term.
The decentralized finance boom has attracted numerous new players. However, one of the problems facing investors is that the protocols are built on different blockchains.
This necessitates the need for a cross-chain protocol, enabling traders to swap tokens across the blockchains in a decentralized way and THORChain (RUNE) is attempting to do just that.
On March 26 the protocol teased that its multichain Chaosnet, which supports native cross-blockchain swapping across five chains is expected to go live soon.
This feature could attract several new investors who may lock their assets in THORChain for greater yields. If that happens, the total value of assets locked in THORChain could surge from the current $553 million TVL and add further benefit to RUNE investors.
Successful implementation of this feature could increase the demand for RUNE. On Feb. 23, Crypto investment firm Multicoin Capital also revealed a large position in RUNE.
RUNE rallied from an intraday low at $4.50 on March 25 to an intraday high at $8.93 today, a 98.44% rally in eight days. However, the long wick on today’s candlestick suggests profit-booking at higher levels.
The RUNE/USDT pair may retest the breakout level at $6.76. If the bulls can flip this level to support, it may act as a launchpad for the next leg of the uptrend that may reach $10.26.
The upsloping moving averages and the relative strength index (RSI) in the overbought zone suggest bulls are in command.
If the bears sink the price below $6.76, the pair may drop to the 20-day exponential moving average ($6.24). A bounce off this support will indicate the sentiment remains positive and it may keep the uptrend intact.
This positive view will invalidate if the bears sink the price below the 20-day EMA. Such a move could pull the price down to the 50-day SMA ($5.36) and then to $4.50.
The DeFi space is crowded and projects will have to think out of the box and introduce attractive products to stay ahead in the game. However, for the past few weeks, there have not been any major announcements from the Acropolis (AKRO) team.
High Ethereum gas fees continue to be a burden on users and that may have taken a toll. These could be some of the reasons why the protocol’s TVL is only at $37.31 million, according to a weekly update on March 31.
The team did mention that it is working on new vault strategies but it did not dish out too many specifics. In a bull market, almost everything rises, but projects that do not have a distinct advantage over their competitors struggle when the next downturn happens. Therefore, crypto investors should analyze the fundamentals of the projects and hold the ones that offer an edge over the others.
AKRO has risen from an intraday low at $0.042 on March 25 to $0.088 today, a rally of 109.50% in eight days. The token’s break above $0.072 completed a bullish ascending triangle pattern that has a target objective at $0.127.
However, the long wick on today’s candlestick suggests profit-booking at higher levels. The bears will now try to sink the price back below the breakout level at $0.072. If they succeed, the AKRO/USDT pair could drop to the 20-day EMA ($0.060).
If the price rebounds off this level, the bulls will once again try to push the price above $0.072 and resume the up-move.
Conversely, if the bears sink the price below the 20-day EMA, the pair may drop to the trendline of the triangle. A break below this support will invalidate the bullish setup and signal a possible change in trend.
Helium (HNT) was featured by Cointelegraph on Feb. 9 when it was trading at $3.96. From there, the token rallied to $12.09 on March 28, a 205% rally in just under two months.
The protocol aims to build a decentralized wireless network and connect IoT devices at a fraction of the cost of the current cellular service providers. Since early February, the number of active hotspots has increased from 18,000 to 24,572.
This number is likely to increase as one of its third-party HNT miner suppliers said that it had shipped 2,000 miners to customers in China on March 31. If HNT’s popularity increases in China, the number of hotspots could continue to rise.
Helium recently partnered with Streamr, a decentralized platform for real-time data, which can help users transport, broadcast, and monetize data. Helium has also forged partnerships with several firms that provide various types of IoT solutions.
VORTECS™ data from Cointelegraph Markets Pro turned positive just as HNT was starting the rally on March 25.
The VORTECS™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historic and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.
As seen in the chart above, the VORTECS™ Score for HNT was in the green on March 25, just as the token started its rally from $7.09 to $11.38 on March 28.
The VORTECS™ Score again turned green on March 31 just before the start of the rally and it has remained in the green since then. HNT pric rallied from $9.67 to $11.98 during the period.
Currently, HNT is in an uptrend but the bears are trying to stall the up-move at $12. The bears had pulled the price down from this level on March 28 but the bulls purchased the drop to the 20-day EMA ($8.66) on March 31, indicating accumulation on dips.
The rising moving averages and the RSI in the overbought territory suggest the path of least resistance is to the upside. If the bulls can sustain the price above $12, the next leg of the uptrend could start. The next target objective on the upside is $14.56 and then $17.64.
Contrary to this assumption, if the price again turns down from $12, the bulls will try to sink the HNT/USDT pair below the 20-day EMA. If they succeed, the pair could drop to the 50-day SMA ($6.04).
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Rothschild Investment Buys $4.75M in Shares of the Grayscale Ethereum Trust
Asset manager Rothschild investment Corp has acquired 265,302 shares from the Grayscale Ethereum Trust, a purchase worth $4.75 million.
According to an SEC filing on April 15, the firm also bought an additional 8,000 shares of the Grayscale Bitcoin Trust (GBTC), now owning a total of 38,346 shares.
Not The Rothschild You Think
Rothschild Investment Corp has nothing to do with the Rothschild family, but many in the community are still confused.
Founding members Monroe Rothschild and brother-in-law Samuel Karger have said the firm has no relation with the wealthy dynasty originally from Frankfurt. In 1995, New York Times published an article that clarified the differences between both branches.
Rothschild Investment Corp was founded in 1908, headquartered in Chicago. The firm holds over $1.2 billion in its portfolio and over 450 open positions in the market. Unlike the famous bankers, the firm has been accruing shares since 2017, long before traditional institutions started investing in crypto assets.
Grayscale Finally Hit the $50 Billion Mark
The recent purchase comes after Grayscale hit the long-awaited $50 billion mark. As reported, Grayscale finally holds over $50 billion in total assets under management (AUM). The GBTC alone holds $41,442 million, while the Ethereum Trust holds over $7,420 million.
Ethereum also hit a new all-time high by reaching $2500 after a parabolic run in the last five months. It soared 13.7% last week, breaking its previous resistance at $2,2007. The Berlin hard fork went live a few days ago in an attempt to reduce the high fees on the network, but many users have complained about syncing issues for the network nodes.
The crypto market was overall bullish in the last weeks but the market took a u-turn this weekend, causing mayhem across the board, liquidating over $10 billion worth of both long and short positions in less than a day.
Are we there yet? Here’s why one analyst says its not ‘altcoin season’
Few traders would argue against the fact that Bitcoin (BTC) is in a bull market, but there is less consensus on whether the market is in the midst of an “altcoin season.” A quick view of Crypto Twitter shows the schism between traders who are certain we are halfway through alt season and those who believe it has yet to begin.
Typically, traders rely on a wide swath of indicators and metrics, like Bitcoin’s total market capitalization versus the total altcoin market cap, Bitcoin’s dominance rate, and whether low-cap altcoins have rallied by a certain percentage.
As is the nature of investing, too much signal can at times produce mixed results, so Cointelegraph decided to have a chat with Ben Lilly, co-founder and analyst at Jarvis Labs, to see where he and his firm think the market currently stands and to determine the most appropriate metrics to use in figuring out whether or not an altcoin season is truly at hand.
Cointelegraph: A number of analysts claim we’re in an altcoin season, or at least right at the verge of one. Some are looking at support/resistance flips and fractals on altcoin market cap charts (isolated from BTC’s market cap) to make convincing arguments. Why do you think that we are nowhere near an altcoin season?
Ben Lilly: I believe everybody’s interpretation of what defines an altcoin season varies. For many, altcoin season might exist when both BTC and altcoins move higher. This is opposed to Bitcoin rising while altcoins remain flat or drop.
I think this is a fair view of altcoin season, but it’s not necessarily one I subscribe to. Simply because if this is a definition for altcoin season, it’s not a compelling reason for me to move away from Bitcoin and into altcoins from a risk-adjusted perspective.
Because in that definition of altcoin season, Bitcoin is still the preferable asset to own.
We think of altcoin season as market movements that take people by surprise or at least make traders rethink what is normal.
CT: So, altcoin seasons are not reflecting a macro-level trend shift in the market direction of Bitcoin’s momentum?
BL: Well, getting back to what I said earlier, support and resistances are helpful ways to explain. We can view these as areas that, when broken, create fast price action. It’s the type of action you want exposure to, assuming you’re on the correct side of it. While anything in between these supports and resistances can almost be assumed as “expected” or normal — in a loose sense.
To figure out where this area might be, we can look at a Bitcoin dominance chart. This lets us know the percentage of the market Bitcoin represents. Right now, it’s trading in a range, which is to say an “expected” range. And because it’s trending down, this is good for altcoins as Bitcoin concedes some dominance to other coins.
While many might point to this and say it’s an “altcoin season,” I’ll point out that this type of activity tends to happen in a bull cycle because new money is moving in.
In fact, we’ve been trading in this range of expectation from the middle part of 2019, which coincides with when Bitcoin found its low and began to turn bullish.
Oddly enough, we recently jumped out of this range in late 2020, and when we did, Bitcoin went on an absolute tear. During this run, altcoins lost value. And similar to how Brent Johnson describes his dollar milkshake theory, Bitcoin sucked up the market’s liquidity as it ran higher.
We have since returned to this range of expectation, also known as the normal area of the market.
Now, if the opposite happens and we break this expected range to the downside, in our point of view, this will signify that altcoins are the asset to be sitting in, as they will generate outsized returns relative to Bitcoin. That’s when things will get wild.
CT: For years, traders have pinpointed the shifts in dominance rate between BTC and altcoins as a relevant indicator of when altcoin season begins. As the theory holds, when Bitcoin’s price consolidates or is in a downtrend and its dominance rate drops below a certain percentage, altcoins capitalize on Bitcoin’s range-bound action by rallying higher. What thoughts do you have on this?
BL: Similar to what I explained previously, it’s all about expectations. As soon as the market creates a change in view of what’s normal, then “altcoin season” will appear.
Another chart I’m frequently leaning on is the ETH/BTC pair. When Ether gains in relation to BTC, this is generally a good sign for altcoins. And recently, there’s been some bullish momentum on the chart within its current range of expectation.
The ETH/BTC pair is currently forming what we can describe as the Livermore Accumulation Cylinder. For more than a month, we have been discussing this in our free “Espresso” newsletter from the Jarvis Labs Substack, and what is clear is that the chart is taking form and is at the later stages of its trend.
If ETH/BTC breaks up and out of this cylinder, it’ll be another moment where expectations of what is normal will be adjusted. This is when we will see fast price action, and likely an altcoin season.
CT: While a rising tide does lift all boats, altcoins have been the top performers in the market when compared with Bitcoin. A quick look over CoinMarketCap shows that at least 50 have made moves that are well above 100%, and the altcoin market cap has risen from $250 billion in January to nearly $900 billion today. In your opinion, what is the primary signal that the market is in a proper altcoin run?
BL: Now, this is a bit different than an altcoin season, in my opinion. That’s because a proper bull run for altcoins is when investors are more likely to walk further out on the risk curve of crypto versus simply buying Bitcoin, not necessarily outsized gains compared with Bitcoin.
Based on this definition, we can make the case that whenever Bitcoin dominance is falling while crypto as a whole is in a bull market (like today), then this is a bull market for altcoins.
While investors might not have outsized gains relative to Bitcoin in a proper altcoin bull run like they would in an altcoin season, it is wise to begin building exposure to these higher-risk assets in this environment.
CT: Does on-chain data have any value in determining when alt seasons begin?
BL: Absolutely. On-chain is very valuable if you know how to filter out all the noise that comes with it. With crypto, there’s so much transparency in seeing transactions on-chain. This creates a trove of data that can be looked at in hundreds of different ways, many of which are somewhat meaningless.
At Jarvis Labs, we filter out all the data to find the data that matters. Then we run it through algorithms to create trade signals. It’s high-value data analytics and tends to be used in place of in-house analysts.
In saying that, on-chain is still an evolving space outside of Bitcoin and Ethereum. We’re on half a dozen blockchains watching these signals evolve and generating a variety of reliable signals will better pinpoint exactly when trend shifts take place and altcoin seasons begin and end.
One simple thing traders can follow in order to see the progression of an altcoin season is USDT flows.
When an altcoin season arrives, we’re likely to see USDT flow into other layer-two protocols such as Polkadot, Cosmos and Solana. That’s because many small-cap assets that are very far out on the risk curve, which tend to be bought in these types of environments, will exist on decentralized exchanges rather than centralized exchanges.
As investors start buying up these small-cap assets, liquidity will arrive, and USDT is the most ubiquitous form of liquidity in the market.
So, when USDT enters these ecosystems by the hundreds of millions, you can be sure it’s altcoin season, as investors will be chasing these assets only found on DEXs native to their protocol (i.e., Serum).
CT: Is it possible that the narrative may be changing and that some altcoins are breaking away from their reliance on the performance of Bitcoin, shifting what an altcoin season may look like?
BL: The changing landscape of risk is how I view this particular question.
And as other assets begin to grow in market cap and age, the network effects will grow. This, in turn, will insulate many crypto assets from Bitcoin since a lot of value will be attached to them.
In this way, over time altcoins will slightly deviate away from BTC’s performance.
Ethereum will be the first asset to do this, simply because of where it’s at in terms of its life cycle and development. But in terms of being immune to Bitcoin’s price, this won’t happen for many years. In fact, I think there will always be some correlation to an extent.
That’s due to macro reasons. Simply put, commodities as a whole tend to have a correlation to one another, equities as a whole have correlation, and even currencies tend to move in tandem with one another (i.e, USD, CHF, JPY). In saying this, crypto as a whole is likely to move in tandem with one another for at least most of this decade if not longer.
Disclaimer: Cointelegraph does not endorse any content or product on this page. While we aim to provide you with all the important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as investment advice.
COINQVEST and Anclap introduce inflation free cryptocurrency payment processing for Argentina
COINQVEST, a licensed virtual currency service built on the Stellar Network that allows merchants to accept, manage and disburse cryptocurrency payments, today announced its collaboration with Argentina-based Anclap, a Peso Argentino anchor and financial technology service provider, to bring blockchain-based and inflation-free payment processing to merchants and enterprises in Argentina.
Anclap provides real-time bank account integration in Argentina and helps businesses protect themselves from the inflationary nature of the Argentine Peso.
The COINQVEST platform offers Argentinians secure payment processing of transactions in BTC, ETH, XLM, and other major cryptocurrencies or stablecoins with settlement to international and local fiat currencies. Merchants can on and off-ramp funds from digital wallets or brick-and-mortar bank accounts.
Benefits of COINQVEST include non-custodial settlement, reduced costs and settlement times, crypto wallet and fiat bank payouts, customer invoicing, and compliant record-keeping.
“Argentinian merchants can now settle sales in USD and maintain a USD balance sheet to protect themselves from the depreciation of the Argentina Peso. Settled funds can automatically be exchanged into ARS using payment rails provided by Anclap in real-time.”
– Marcin Olszowy, Co-Founder at COINQVEST
COINQVEST’s service offers solutions for developers and non-developers alike. A hosted checkout interface was created for lean businesses without web development personnel. For enterprises with a dedicated development team, COINQVEST’s powerful and well-documented API with white-label capability is available for greater control and customization.
“COINQVEST is redefining the digital payments industry. It brings countless benefits for Argentine businessmen and entrepreneurs. Anclap participates in this process connecting e-commerce with the local financial system through Argentine Pesos, providing an on-/off-ramp to the network, and allowing access to new global financial services instantly and safely, maintaining full compliance with PLA/FT regulations.”
– Ivan Mudryj, Co-Founder at Anclap
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