Analyst: The “Real” Altcoin Party Begins In Early 2021
Thus far, 2020 has been the year of the altcoin, not Bitcoin. Which altcoin is the year’s biggest star may be arguable, but its quite clear that the alternative digital currencies have beat out the first-ever cryptocurrency by a wide margin.
And although altcoins have vastly outperformed Bitcoin so far this year, one pseudonymous crypto analyst claims that the real altcoin party doesn’t start until early next year. Will 2021 be the real year for altcoins to shine?
Altcoins Shine in 2020, Outperform Bitcoin, But Party May Not Begin Until Next Year
All throughout the world of finance, Bitcoin is being looked at as the best performing asset of the year thus far. And in mainstream finance, this is true. Bitcoin has outperformed the stock market, gold, oil, and nearly every other asset on the face of the planet.
However, crypto market insiders know that Bitcoin’s 60% ROI for the year is nothing compared to several other altcoins. For example, Chainlink is up 750% in 2020 in comparison.
Related Reading | Easy Money? Coinbase Crypto Coins Grow Over 50% On Average In August
The top altcoin, Ethereum, is up 200% year to date, more than tripling Bitcoin’s returns. In fact, Ethereum beats out just about any other investment made with a $1,200 stimulus check, if held through now.
Bitcoin and Altcoin Market Cap Chart Comparison | Source: TradingView
Even the total altcoin market cap as a whole is up well over 125% for the year, led by the seemingly unstoppable DeFi trend. Buying nearly any altcoin on Coinbase in this month would have resulted in a 50% or more return on average.
But even with so much wealth being generated, could the real altcoin party still be a far way off?
Alt Season Outperformance Expected in 2021, Even As BTC Surges To $300,000+
According to one pseudonymous trader analyzing the charts of top altcoins Ethereum and XRP, the altcoin party won’t be starting until “the beginning on next year.”
Related Reading | Will An Ascending Trendline Bring a Return of Altcoin Apocalypse?
Three and a half years later, the analyst says, both the number two and three ranked cryptocurrencies are exhibiting a similar flip of resistance into support. This high timeframe resistance should be tested as support in the next few months, according to the analyst’s charts.
Ethereum and XRP Chart Comparison | Source: TradingView
Assets often come back to retest resistance to confirm it as support, before moving higher. This tells market participants that prices won’t be moving lower, and encourages more ferocious buying on the way back up.
This is exactly what the analyst expects to take place towards the end of 2020, causing top altcoin assets to cool off for some time after such a powerful recovery rally.
Once support is confirmed, however, these altcoins are ready and primed to pump, and could see a repeat of 2017-like returns if cryptocurrencies continue to follow Bitcoin’s four-year cycle.
2021 also could act as the next top for crypto, with Bitcoin reaching prices projected to be as high as $325,000 per BTC. If alts are poised to outperform Bitcoin, and the asset is projected to rally to heights like that, owning altcoins could be the fastest track to financial freedom.
OhNoCrypto
via https://www.ohnocrypto.com
Tony Spilotro, Khareem Sudlow
