Despite the expectation of a Bitcoin price rebound by majority of crypto users, the extent to which it has surged since the beginning of April still comes as a surprise to a lot of people. Since it broke the $4,200 resistance, the Bitcoin rally has been unstoppable as the cryptocurrency has almost doubled in price, rising to over $8,300 before consolidating.
Bitcoin has moved up and Altcoins followed, but at a more conservative rate. As a matter of fact, when compared to Bitcoin, technical analysis reveal an outright bearish trend for these coins.
However, with the benefit of history, considering previous cycles and overall market behaviour, the bearish trend for Altcoins is about to be over. This will instigate an upward trend with the potential of delivering over 600% gains for these coin holders based on the market momentum.
Most cryptocurrency exchanges pair Altcoins against Bitcoin due to Bitcoin’s wider acceptance as a more universal digital asset. This situation mixes up the relationship between them. Sometimes, both sets of cryptocurrencies rise and fall together with respect to fiat, while at other times they exhibit an inverse relationship.
In this present cycle, while Bitcoin headed north since the beginning of April, turning in almost 100% value in profit, Altcoins have faced the opposite direction relative to BTC. The total market value for these coins in this respect has fallen over 66.5% within this period.
According to Nik Patel, an experienced trader and the author of the book “An Altcoin Trader’s Handbook”, the bear market for these coins is nearing exhaustion and the upside potential is huge. In a post on his twitter handle, Nik said:
“Couple of fun facts: Of the previous 4 ALTBTC bear cycles, the average drawdown has been 69.7%. The current drawdown of this ALTBTC bear cycle is 66.5%. The average growth experienced across the past 5 ALTBTC bull cycles was 617%”.
This means that the Altcoin market is just about 3% away from a likely turnaround that will see tokens like Ethereum, Ripple and Litecoin surpass their all time high prices that were achieved in the last bull run.
Investors see this as an opportunity to accumulate Altcoins in preparation for the surge.
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