Wednesday, January 19

What the crypto charts tell us about the next big move


As we close out 2021, altcoins like Ethereum (ETH) and Solana (SOL) are doing the heavy lifting. This is in stark contrast to previous year-end cycles where Bitcoin (BTC) was the first to launch, then pulling altcoins for the ride.

Not this year.

BTC traded back to $ 56,000 this week, struggling to get back above $ 60,000 after US Federal Reserve Chairman Jerome Powell warned of higher inflation and said the central bank would consider accelerate its reduction and tightening monetary policies.

This news did little to slow the growing enthusiasm for ETH, which broke new all-time highs in South African equities, surpassing R76,000 this week.

We compiled some charts to explain what is happening. The first chart shows how ETH has outperformed BTC since late October and this week it broke through a pennant formation, indicating further strength for ETH in the coming weeks.

“ETH, as the second largest crypto asset by market cap, enjoys strong support from backing traders and investors due to its dominance of the smart contract space and due to its structural trading setup versus Bitcoin,” he says Brett Hope Robertson. investment analyst at crypto platform Revix.

Ethereum outperforms Bitcoin

Source: Revix

The chart below shows ETH’s extraordinary performance during the second half of 2021, with some analysts now projecting a price target of $ 10,000 in the coming months.

Source: Revix

The graph below shows BTC’s declining dominance in the crypto space – it accounts for just 42% of the total market capitalization of all cryptocurrencies, compared to more than 90% in 2017 and prior years. The last time it was at such low levels was in 2018 during the last BTC bear market. Hope Robertson says that BTC’s ability to reassert its dominance, as it did in the years after the 2018 BTC bear market, should not be discounted.

Bitcoin dominance: BTC makes up about 42% of the crypto market

Source: Revix

Another useful chart for monitoring the cryptocurrency market cycle is the ‘fear and greed’ chart.

This week the Index of fear and greed (which is based on multiple data sources) slipped to 21, which is in ‘Extreme Fear’ territory. A month ago, the index was at ‘Extreme Greed’.

As the chart below shows, every time BTC enters ‘Extreme Fear’ territory it has been a reasonably reliable time to buy, as it has historically been followed by a market rally.

“A lot of people use the Fear & Greed index to help them time their BTC purchases, as it has historically been quite reliable,” says Hope Robertson. “As Warren Buffett once said, ‘Be afraid when others are greedy and greedy when others are afraid.’

Bitcoin slides into fear territory

Source: Revix

Another interesting graph shows the total market capitalization of the crypto market, excluding BTC (which has a market capitalization of $ 1.08 trillion). Including BTC, the total crypto market capitalization now stands at $ 2.6 trillion. Excluding BTC, the total market capitalization of all cryptocurrencies is $ 1.53 trillion and the figure is increasing considerably.

“This is a sign that the cryptocurrency market is maturing as it reflects the rise of altcoins relative to BTC,” says Hope Robertson. “There are thousands of altcoins and many of them will probably fail, but in the sea of ​​failures, it is possible to find the next Amazon.”

Source: Revix

How to identify the winners

One way to identify winners is to invest in one or more of Revix’s cryptocurrency ‘bundles’, which take the guesswork out of identifying the best performing cryptocurrencies:

  • The Top 10 Package, which spreads your investment equally among the 10 largest crypto assets, measured by market capitalization. This bundle has increased 427% over the last 12 months.
  • The smart contract package, which spreads your investment equally among the cryptocurrencies behind the smart contract revolution that challenges the traditional financial sector (smart contracts are self-executing pieces of code that allow you to borrow, lend, earn interest, and make payments without a middleman) . This package appreciated 532% in 12 months.
  • The payment package, which spreads your investment across five cryptocurrencies that seek to revolutionize money and how value is transferred. This bundle has increased by 125% for 12 months.

Get a chance to win one of three exclusive pairs of Tateossian® Blockchain cufflinks.

Simply predict what you think the price of Bitcoin will be on January 3, 2022, and make an investment of R500 or more in Bitcoin through the Revix platform.

About Revix

Revix brings simplicity, confidence and excellent customer service to the investment. Its easy-to-use online platform enables anyone to securely own the world’s top investments with just a few clicks.

Revix guides new clients through the registration process to their first deposit and first investment. Once configured, most clients manage their own portfolio, but can access support from the Revix team at any time.

For more information please visit www.revix.com

This article is intended for informational purposes only. Opinions expressed are not and should not be construed as investment advice or recommendations. This article is not an offer, nor is it a solicitation of an offer, to buy or sell any of the assets or securities mentioned herein. You should not invest more than you can afford to lose, and before investing, consider your level of experience, your investment objectives, and seek independent financial advice if necessary.

Presented by Revix.

Moneyweb does not endorse any product or service that is advertised in sponsored articles on our platform.


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