Does Bitcoin’s Bearish Turn Signal a True “Altcoin Season”?

•  Bitcoin (BTC, Tech/Adoption Grade “A-”) fell further today, briefly hitting lows near $53,200 before settling in just north of $55,000.

•  Ethereum (ETH, Tech Adoption Grade, “A-”) has held its ground near $1,800 through midday Tuesday.

•  Altcoins generally have held up better than the King of Crypto so far during this week’s selloff. 

Bitcoin’s correction continued on Tuesday, as the King of Crypto slipped all the way down to $53,200, though it has settled in at about $55,500.

This price action is surprising because stimulus checks have started to hit bank accounts, which analysts had speculated would spark a surge of retail interest in BTC.

Bitcoin has been trending closer and closer to its 21-day moving average and may test that key metric as this week progresses. A break under that level would be short-term bearish for Bitcoin.

Here’s BTC in U.S. dollar terms via Coinbase:

Ethereum’s price ticked down to $1,700 earlier today but quickly bounced off that level and stabilized at about $1,800.

ETH is still trading above its 21-day moving average but needs to break above its latest high of $2,030 in order to justify a bullish short-term view. Until it does, we’ll remain neutral on the No. 2 investment alternative to Bitcoin.

Here’s ETH in U.S. dollar terms via Coinbase:

After a blazing-hot run, EOS (EOS, Tech/Adoption Grade “C”) hit a high of $5.57 on Feb. 13. It cooled off and retraced all the way to $3.19 on Feb. 23. Since then, it’s been able to retake the psychological level of $4.00 and is now trading above its 21-day moving average again.

Despite a test over the weekend, EOS has been unable to jump above the resistance level at $4.25. If EOS can’t manage to cross that level and test the next resistance of $4.75, it could fall back down to support around $3.50 in coming days.

Here’s EOS in U.S. dollar terms via Coinbase:

Notable News, Notes and Tweets

•  In what seems like a bullish move, investors are moving their Bitcoin off exchanges.

•  With a little bit of humor, Pomp puts this week’s price correction into perspective.

•  A note of caution to those of you investing in NFTs, please do your own research on each non-fungible token and its artist.

What’s Next

It’s been some time since we’ve seen altcoins outperform Bitcoin, as the “altcoin season” that we called in February was short lived.

At the same time, we’re well overdue for some sideways trading action in Bitcoin. And many major altcoins have yet to top their 2017-18 highs.

In fact, it seems odd just how overdue we are for these two things. Indeed, many analysts have forecast “altcoin season”-type market action since the start of 2021. 

This week will be very telling; another few days’ worth of action like we’ve seen so far Tuesday would indicate we are heading for altcoin season.

Of course, the most telling sign would be a new all-time high for Ethereum while Bitcoin remains under $60,000.

Right now, a true altcoin season seems inevitable. The timing is the only question.

Stay tuned …



About the Crypto Analyst

Alex has been actively researching and investing in cryptocurrencies since 2017. He contributes research and reports to several Weiss crypto publications, with a primary focus on helping to create crypto trading strategies.

See All »
ETH $3,599.10
ALGO $0.154618
ADA $0.418198
SOL $149.88
UNI $11.55
ZRX $0.469762
AAVE $85.19
ARB $0.934039
CRO $0.098866
MKR $2,434.03
Crypto Ratings
Weiss Ratings