Market

The Altcoin Market Made an All-Time High Monthly Close for CRYPTOCAP:TOTAL2 by VictorCobra

This is just a simple observation. Don’t really have time to go too in-depth with this one, but this is a substantial deviation from the prior cycle. This time, it appears Ethereum and other altcoins are leading the market. This makes sense, since Ethereum has numerous applications and investment vehicles within its own ecosystem. Bubbles within bubbles. Even so, I think the cryptocurrency market is unlikely to withstand a prolonged Bitcoin downturn, unless everything moves to stablecoins. Even then, there probably wouldn’t be enough liquidity for such an event. Stablecoins are likely to be further regulated as it is.

Anyway, for the month of April, TOTAL2 closed at $1.073 Trillion. It closed at $1.198 Trillion in August. This tells us that the majority of the space is still in a bull market (at least in terms of market capitalization). TOTAL2 also never closed below the 9 month EMA (orange), while Bitcoin closed below it in June.

We also cannot ignore the rise and application of stablecoins. TOTAL3 (the market cap minus both Bitcoin and Ethereum ) also made an ATH monthly close.

I do think sentiment particularly in the altcoin market is very frothy. Despite this, the market can continue up, and the next move can be quite explosive. As they say, “the market can stay irrational longer than you can stay solvent.” If we see something like that, with everything going up suddenly in rocket-style fashion, I think it’s likely to end in a blowoff top (similar to 2017). TOTAL2 will not be in a bearish trend until the monthly trend reverses. Even in 2018, alts didn’t really continue making monthly highs once Bitcoin topped.

Does this tell us that Bitcoin itself hasn’t topped yet?

That’s it! We’ll see. Very interesting times. I’ll write a more philosophical post soon, but for now back to my other work. Thank you for your support! This is not financial advice. This is meant for speculation and entertainment only.

-Victor Cobra

Most Related Links :
usnewsmail Governmental News Finance News

Source link

Back to top button