The alt-season we’ve been waiting for
The two largest cryptocurrencies regained their positions after a brief correction. Meanwhile, altcoins continue to grow as investors look for projects that can offer huge growth potential.
Alt-season in full swing
Bitcoin is approaching the $ 60K price level as it seeks to set a new high, surpassing $ 61,000. But not only the BTC attracts the attention of traders. Crypto traders are following the altcoin season.
After an extremely positive week for the cryptocurrency market, the broader market has been growing rapidly, with very few exceptions. The six-day trading week marked the growth of almost all notable cryptocurrencies, and positive industry news helped to improve the market mood.
The most well-known cryptocurrencies made a big jump this week, although we saw a continuation of the alternative season, when less established projects took off at a faster pace.
Ethereum (ETH) was also expected to break above its previous high above $2K. Since yesterday, Ether has achieved good results, finally rising above $ 2,000. They’re now just over $ 1,000 off new all-time highs, and he’s in a great position to make a run for the rest of the week. At the moment, ETH is trading at $ 2,004.
Another higher close today would be the positive sign we are looking for. Conversely, if ETH fails to set new highs this week and retreats, it will be an early warning sign that it is heading for a correction.
Filecoin (FIL) has increased in price again today, as it rose by 400% at the end of March.
The day before yesterday, Filecoin went crazy, and grew by more than 23%, rising to $ 230. At the moment, FIL has pulled back slightly, and is trading at $ 201, in anticipation of continuing to demonstrate the parabolic price. In March alone, the token gained more than 400%, which is a truly astronomical increase.
Whatever the reasons for this trend, FIL is definitely in value-determining mode. In addition, it may be slightly overbought at these levels, so traders should be careful.
Chainlink (LINK) rose about 9% from yesterday’s lows and broke the critical resistance level.
Chainlink had a rough March, as it never seemed to gain traction and could not stay above $ 30 for any significant period of time. Yesterday, it finally crossed this level and will seek to establish $ 30 as support to move forward. It is currently trading at $ 30.56.
LINK is one of the most interesting coins to watch in this alternate season. Unlike many other fast-growing coins, Chainlink has a proven and established use case that will be critical to any revolution taking place around decentralized finance.
Analyzing the Crypto Market
The alternative season is a time when portfolio diversification pays off, as it is not always easy to predict which assets may become parabolic. Compared to the “blue chips”, we will continue to see cases of significant outperformance, when specific altcoins will grow.
Analyzing this week’s results by market capitalization, we see that cryptocurrencies of all sizes have been growing rapidly. However, the smallest cryptocurrencies grew faster than their larger and medium-sized counterparts. We still haven’t seen most of the major altcoins make huge moves. But this will happen as the new season begins.
Bitcoin and Ethereum are the most important trading pairs, and despite significant outflows to smaller projects, they are still well advanced during the shortened trading week.
There are many bullish catalysts that could propel the king of cryptocurrency to new heights, most notably upcoming offerings for wealthy clients from money managers, growing institutional adoption, and emerging as an asset on corporate balance sheets.
All of these factors bode well for Bitcoin, despite downward pressure from investors seeking excessive altcoin performance and diversification.
It will be important to see if Bitcoin and Ethereum maintain this momentum, and new breakouts will be a particularly optimistic sign as we move through the alt season.