- A “very positive sign” that market is consolidating the gains but hasn't retreated much
- But “less volatility, less action, equals less excitement and less trades”
- Altcoin index “bullish AF,” while larger-cap cryptos outperforming, smaller caps are flat
The crypto market is experiencing a green wave. Bitcoin might be in the red, hovering around $8,600 but is up just over 18% to date in 2020.
The crypto market is currently testing the highs to see as Mati Greenspan, founder of Quantum Economics in his daily newsletter explains “if this rally has enough steam to breakthrough into something bigger.”
Though the market has started to see some flecks of red, the fact that we are still consolidating the gains made last week and hasn't retreated by much is a “very positive sign,” said Greenspan.
However, what can’t be ignored is the declining volume. Last week, Bitcoin managed the daily trading volume of over $1 billion which has now dragged down to less than $500 million on top ten exchanges with real volume.
So, while sentiment remains good exchange volumes are trailing off with “less volatility, less action, equals less excitement and less trades.”
But Greenspan notes that “while bitcoin remains stagnant, we have seen a few altcoins cautiously forging fresh highs.”
As can be seen, while Bitcoin stayed still over the weekend, altcoins like Tezos, Cardano, and Stellar Lumens made slow but steady gains.
As Greenspan questions aloud, “Is this the start of another altseason?”
Alt-Season or Not Yet?
There are still 10 days let in the first month of 2020 but altcoins are the ones leading the market.
Among the top 10 cryptocurrencies, Bitcoin SV (BSV) is at the top with 232% gains YTD that reached a new all-time high. BSV is followed by the cryptocurrency from which it was hard forked, Bitcoin Cash. BCH is up 64% in 2020 to date trading at $340.51, a bit higher than BSV’s current value of $314.60.
Other big gainers have been Dash which is up by 160.35%, Bitcoin Diamond (BCD) 114%, Bitcoin Gold (BTG) 107.7%, Ethereum Classic (ETC) by 96.62%, Zcash (ZEC) 86.67%, DigixDAO (DGD) 81.88%, Civic (CVC) 68%, Horizen (ZEN) 60%, and Augur (REP) 50.31%.
Analyst Benjamin Blunts notes, the altcoin index is “bullish AF.”
best way to guage alts strength is the ftx altcoin index and this thing looks bullish AF, no 2 ways about it.
— 🍄🌲Benjamin Blunts🌲🍄 (@SmartContracter) January 21, 2020
Analyst Ceteris Peribus notes 40 of the altcoins with market capitalization more than $50 million, excluding stablecoins, are up 25% on an average. In comparison, 29 altcoins are down on an average of 14%.
While larger-cap cryptocurrencies are outperforming, smaller caps are flat or underperforming. This is why the analyst is “Not close to saying alts are back yet.”