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Bitcoin’s performance over the first month of 2020 exceeded the expectations of most commentators. Indeed, the 32 percent rise outdid every other multi-billion dollar asset other than Tesla. This remarkable uptrend has also served to breathe life into the major altcoins, and many of these are showing indications of momentum that could have significant repercussions for the rest of the year.
Could what we have seen in January be a signal that the bear market in which the altcoins have found themselves over the past few months be coming to an end? Of course it is still early days, but with platforms like Cryptosengine bringing crypto trading to the mainstream, there are literally millions of traders out there watching and waiting to make their move.
Altcoins looking bullish
One thing that the major altcoins have in common is that they tend to track Bitcoin’s price. This has been the case over the opening weeks of 2020 and the net result has been one of solid gains.
Specifically, Ethereum went into February trading at more than $190 for the first time since last November, with its market cap back up above $20 billion. Similarly, Litecoin topped $70 for the first time since September and Ripple finished the month on $0.24 having started at $0.19
A flash in the pan? Commentators tend not to think so. In each case, the gains have steadily built over the course of the month. There is, therefore a quiet but determined feeling around the market that this could be the start of a bull run for the altcoins. Particularly telling is the crypto pair LTC/BTC, which having hovered around 0.006 BTC for some time, exceeded 0.0075 as we moved into February.
The view from the Tweetdeck
Experts and analysts have been quick to share their views on Twitter. These include TraderSmokey, a regular commentator and well known analyst on crypto related topics, who said: “LTC | BTC | Daily TF: Planning on longing LTC if it breaks out and retests .006890. Decent upside from there to nearly .008.”
Bob Loukas is another highly respected trader, entrepreneur and crypto analyst. He sounded a note of caution in his Twitter feed, remarking that it is far too early to say anything with certainty. However, he acknowledged that the indicators are all pointing towards the altcoins breaking out of the bear market. He specifically referred to EOS, Litecoin and Ethereum Classic moving into positive trajectories in their respective Bitcoin pairs: “Relative to #Bitcoin, the Alt’s have been in almost 2 year bear market since early 2018, soon after the Bitcoin/USD bubble top. Early Days yet to call, but seeing some signs of possible end in bear market for Alt’s.” (sic).
Shaping the year to come
One thing that Bob says is beyond any argument. These are definitely early days. There are interesting weeks ahead, and the trends we see over the course of February will provide insights into what we can expect to see over the rest of 2020.
