Altcoins are blowing up across the crypto market, for the first time in what feels like forever. The rallies are reminiscent of the cryptocurrency bubble of 2017 and could be a sign that a new bull market is forming.
However, one analyst says that the current rally is mere “target practice,” for the full-scale bull run coming for altcoins in 2021.
Altcoins Finally Show Signs of Recovery Against Bitcoin
As Bitcoin took the world by storm with its surge to $20,000, investors flocked to altcoins trying to find the next big thing. Eager investors FOMOed into whatever shiny new crypto asset they could get their hands on.
New crypto assets were created by the day as the bubble grew in size. Investors pumped money into assets they didn’t understand, hoping to strike it rich.
And many did. As powerful as Bitcoin’s rally was, assets like Ethereum, XRP, and countless others pumped much more quickly and strongly.
50,000% returns weren’t uncommon over the course of 2017. Altcoins vastly outperformed Bitcoin, even as the asset was soaring on its own.
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Bitcoin dominance, a metric that weighs the leading cryptocurrency by market cap against that of other assets in the space, broke down. It fell from 97% to 35% dominance in just a little over a year.
But after that peak, altcoins have steadily underperformed Bitcoin for nearly four full years. Bitcoin has recovered nearly 50% of the way to its all-time high in USD, while altcoins remain down by 90% or more in many cases.
On BTC trading pairs, altcoins have fared even worse. But all that has changed recently, with altcoins across the market surging while BTC dominance plummets.
The recent trend change is the first real shot at an alt season in years, but one analyst claims that the real rally will begin next year.
Analyst: Current Alt Season Is Target Practice For Coming 2021 Bull Market
The ongoing alt season has led to Chainlink setting a new all-time high, XRP finally pumping out from downtrend resistance, and altcoins surging everywhere.
Low liquidity small-cap altcoins and DeFi tokens have thus far led the charge, but mid- and large-cap altcoins are primed for a major pump.
This all requires Bitcoin to continue to provide an ideal environment for alts to thrive – which tends to be sideways action that causes investors to search for thrills in altcoins.
And while altcoins are currently trouncing Bitcoin, one analyst claims that all of this is just “target practice” for the rally that’s coming next year.
17/ I consider all of this target practice for next year, when the real face-melting alt moves likely start to kick off.
These are just a few of the weapons worth using.
There are others, new ones are invented all the time, and they just keep getting better.
— Cole Garner (@ColeGarnerBTC) July 8, 2020
In an extensive thread on Twitter, Cole Garner reveals strategies for sniping tops on altcoins. These tactics include watching on-chain analytics and short positions on Binance.
The strategies Garner outlines are in preparation for the coming rally in altcoins that the analyst sees in the year ahead. That’s when “the real face-melting alt moves likely start to kick off,” he says.
Related Reading | Altcoins Pumping on Cryptocurrency Exchange Listing Brings Back Memories Of Bull Market
Other analysts expect gains to be much more difficult to come by in the next crypto bull market. However, if its anything like the last bull market, face-melting gains will be commonplace in the altcoin space.
Other signs are also backing up the idea of a new bull market forming. Crypto assets are pumping following exchange listings against, and TikTok users are attempting to pump and dump Dogecoin.
All this is reminiscent of the irrational exuberance that fueled the bubble in 2017. Will lightning strike twice for altcoins?