The entire digital currency market is up today, pushing toward $2 trillion of total market capitalization. And altcoins are breaking out …
• Bitcoin (BTC, Tech/Adoption Grade “A-”) is up 3% today and is now about 12% off the lows of late last week.
• Ethereum (ETH, Tech/Adoption Grade “A-”) has crossed back above its 21-day moving average, looking more bullish than it did on Friday.
• Tezos (XTZ, Tech/Adoption Grade “B-”) is struggling to cross back above $5, but seems to have set a solid floor.
Bitcoin has climbed 12% since off-lows set at the end of last week. The King of Crypto has also managed to jump back above its 21-day moving average, a good sign for the strength of this bounce.
If BTC can hold this level, it’ll be well positioned for another push to new all-time highs. If it fails to set a new high and drops back below its moving average, it’ll be set for another short-term dip.
Here’s BTC in U.S. dollar terms via Coinbase:
Ethereum also had a good weekend of trading and is also up about 12% from its lows at the end of last week. The No. 2 crypto is up 5% today alone and has crossed back above its 21-day moving average.
ETH is trading at $1,777 as of midday Monday; its next target is $1,800. If it can manage to close above that level, it’ll be primed up for another run at new all-time highs.
Today’s rally coincides with the breaking of multiple bullish news stories, including the announcement that Visa Inc. (NYSE V) is using the Ethereum blockchain to settle transactions using the USDC stablecoin.
The fundamental case for Ethereum has never been better, and it would shock no long-term crypto observer if it made a big run from here.
Here’s ETH in U.S. dollar terms via Coinbase:
Tezos didn’t fall nearly as much as either Bitcoin or Ethereum last week, as it’s been trading around its moving average since March 7. It’s back up above that metric on a 4% spike today.
XTZ has had a tough time breaking back above resistance at $5. If it succeeds here, a move to new all-time highs is possible. If it fails to do so in the next week or so, we could see XTZ retest support at $3.50.
Here’s XTZ in U.S. dollar terms via Coinbase:
Notable News, Notes and Tweets
• Ari Paul of Blocktower reminds us all of a simple piece of trading advice.
• In the latest sign of broad cultural uptake of all things digital, “Saturday Night Live” featured a skit on non-fungible tokens (NFTs) this weekend.
• Sure, NFTs are hot (and get to hang out after-hours with celebrities in Manhattan), but don’t forget about decentralized finance (DeFi).
What’s Next
We’d been warning about a potential extended correction last week. But that doesn’t appear to be happening, at least not yet. And, if we zero in a bit, we can see that the excitement lies in the investment opportunity in alternative digital assets right now.
Last week, when blue-chip cryptos showed some weakness, many altcoins, such as Filecoin (FIL) and Theta Token (THETA) went on to set record highs. Even now, the charts on most altcoins reveal the assets are primed and ready for big runs.
For the last few months, Bitcoin dominance had continued to grow in the face of major development in the altcoin space, particularly with DeFi. That trend seems to be ending, and altcoins look ready to take the spotlight.
What’s evident from the “Saturday Night Live” bit is that cryptocurrencies other than Bitcoin are going mainstream. While there’s still plenty to be made in Bitcoin and other blue-chips, altcoins still offer explosive gains available only to early movers.
We’ll continue to keep you posted as the market develops.
Best,
Alex
