Altcoins
Market signal that preceded 400% altcoin rally in 2020 is now bullish, Glassnode co-founders say
A key indicator that preceded a 400% rally in altcoins is once again showing bullish signs, according to the co-founders of market intelligence firm Glassnode.
In a new thread, Glassnode co-founders Jan Happel and Yann Allemann, known by the pseudonym Negentropic, tell Their 63,300 followers on social media platform X say investors are moving their funds into riskier assets.
Happel and Allemann reached this conclusion after the Nasdaq fell 2% while the iShares Russell 2000 ETF (IWM) rose 3%, a move similar to that which preceded the 400% altcoin rally of 2020.
“Rotation coming? Yesterday we saw Nasdaq down >2% while IWM up >3%. This is a clear indication of rotation. The move to riskier assets. Will we see this in Bitcoin and alts as well? Well, in November 2020, we had a day just like yesterday. IWM skyrocketed and continued to rise for months to come.
This was the starting signal for the strongest part of the alt-rally for the next four months, as TOTAL3 (crypto market excluding BTC and ETH) has grown by about 400% in just 4 months. Will we see the same thing again? Will the rotation create a massive rally in alts? We think it could very well happen!”
Source: Negentropico/X
TOTAL3 is currently sitting at $575.8 billion, according to TradingView.
Let’s move on to the king of cryptocurrencies, Negentropic He says that Bitcoin (BTC) has key resistance levels ahead of it and if it succeeds, its price could rise to between $65,000 and $70,000.
“[We] highlighted BTC’s need to consolidate before moving higher. Key resistance levels: $58,300 and $60,000. BTC price is heating up, testing immediate resistance at $58,523!
Since June 16th we have reached the highest risk levels (dark red line), as shown in the chart that was taken before the correction occurred. Medium-term focus: $65,000 and $70,000.”
Source: Negentropico/X
At the time of writing, Bitcoin is trading at $59,139, down slightly over the last 24 hours.
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