Altcoins
Market Signal That Preceded 400% Altcoin Surge in 2020 Is Currently Bullish, Glassnode Co-Founders Say
A key indicator that preceded a 400% surge in altcoins is bullish again, according to the co-founders of market intelligence firm Glassnode.
In a new thread, Glassnode co-founders Jan Happel and Yann Allemann – who go by the name Negentropic – say Their 63,300 followers on social media platform X indicate that investors are moving their funds to riskier assets.
Happel and Allemann came to this conclusion after the Nasdaq fell 2% while the iShares Russell 2000 ETF (IWM) rose 3% — a similar move that preceded altcoins’ 400% rally in 2020.
“A rotation coming? Yesterday we saw how the Nasdaq went down by more than 2% while the IWM went up by more than 3%. This is a clear indication of the rotation. The move to riskier assets. Will we see this in Bitcoin and altcoins as well? Well, in November 2020 we had a day like yesterday. The IWM shot up and continued to rise for the next few months.
“This was the starting signal for the strongest part of the alt rally for the next four months, as TOTAL3 (cryptocurrency market excluding BTC and ETH) rallied ~400% in just 4 months. Will we see the same thing again? Will the rotation create a massive rally in the alts? We think it could well happen!”
Source: Negentropic/X
TOTAL3 is currently session to $575.8 billion, according to TradingView.
Now let’s move on to the king of crypto, Negentropic said that Bitcoin (Bitcoin) has key resistance levels ahead and if successful, it could see its price rise to between $65,000 and $70,000.
“[We] highlighted the need for BTC 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 16, we have reached the highest risk levels (dark red line), as shown in the chart, which were detected before the correction occurred. Medium-term target: $65,000 and $70,000.
Source: Negentropic/X
At the time of writing, Bitcoin is trading at $59,139, down slightly over the past 24 hours.
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