The big cryptocurrencies are holding steady, while many altcoins have ripped to new highs.
-
Bitcoin (BTC, Tech/Adoption Grade “A-”) is pretty much right to the level where it started the week, indicating mostly sideways trading for the King of Crypto this week.
-
0x (ZRX), new to coverage in this space, is up more than 20% today and an eye-popping 550% so far in 2021.
-
Action in the Weiss Crypto Indexes this week absolutely reflects “altseason.”
Bitcoin has essentially been trading sideways since mid-March after peaking north of $61,000. And you know what? This recent action is actually healthy for both Bitcoin and the rest of the market.
For Bitcoin, what’s happening is good because it’s building back some buy-side pressure, consolidating and establishing a steady base for its next large move in what is a continuously improving macro context.
It’s good for the crypto market at large because when Bitcoin trades sideways like this, it simply exposes altcoins to more investors. That’s why we call it “altseason.”
Still, BTC is still trading north of $58,000 today, a solid level on which it’s building for a fresh breakout. That’s what happened with the previous all-time high set in February.
For now, the King is fine as long as it trades above $55,000. A drop below that level, meanwhile, should be construed as a buying opportunity ahead of the next bull run.
Here’s BTC in U.S. dollar terms via Coinbase:
We haven’t covered 0x here, but it’s high time we did, as it’s up more than 20% today.
0x is a decentralized exchange protocol that allows developers to create their own decentralized exchanges (DEXs). ZRX is close to setting a new all-time high; its previous high was set in early 2018, somewhere between $2.50 and $2.75.
ZRX has had an absolutely outstanding year: Kicking off 2021 around $0.35, it’s risen more than 550% all the way to $2.27 today. That’s much too big of a run to ignore.
The fact that some of the popular coins from the 2017-18 bull market look like they’re getting ready to push to new all-time highs is yet another good sign for altseason.
ZRX will likely face some resistance between current levels and the $2.50 mark and will be in uncharted waters if/when it breaks above $2.75.
Here’s ZRX in U.S. dollar terms via Coinbase:
Index roundup
Most of the crypto market advanced this week, but Bitcoin underperformed. While Bitcoin traded sideways, it still didn’t lose much ground compared to last week, which is a good sign when the rest of the market is taking off.
Bitcoin usually isn’t setting the pace during altcoin season, but it often holds its value the best during correctional periods of volatility.
Meanwhile, Ethereum (ETH, Tech/Adoption Grade “A-”) managed to cross the symbolic $2,000 price level and hit a new all-time high, which is very bullish even as investors look for outsized returns in smaller altcoins.
The Weiss 50 Crypto Index (W50) gained 9.18% this week as the crypto market continues its rally.
The Weiss 50 Ex-BTC Index (W50X) increased 19.05%, showing the King of Crypto was lapped by the broader market in comparison.
Breaking down this week’s performance by market capitalization, we see that smaller and mid-sized altcoins vastly outpaced the most established names.
The Weiss Large-Cap Crypto Index (WLC) rose 13.76%, as other big names excluding Bitcoin managed to advance.
Mid-cap cryptocurrencies shot up this week, but they still trailed behind the small-caps. The Weiss Mid-Cap Crypto Index (WMC) climbed 29.82%.
The small-caps were the biggest winners again, with the Weiss Small-Cap Crypto Index (WSC) skyrocketing 48.24% higher.
This week’s crypto market performance was strong, and it was no surprise to see smaller and mid-sized altcoins set the pace again.
As altseason progresses, we’ll continue seeing massive jumps from projects because of increasing hype and adoption.
Another big reason these smaller assets tend to outperform is the fact that they’re purchased using pairs of the most established cryptocurrencies, which puts downward pressure on the biggest names.
It’s a positive sign that Bitcoin and Ethereum are still appreciating, or holding their value, as it shows they remain in high demand.
Growing institutional adoption and recognition of the crypto market’s utility should continue to drive the long-term bullish trend even through periods of higher volatility.
Notable News, Notes and Tweets
- Altseason?
- Grayscale Investments will eventually convert flagship Grayscale Bitcoin Trust (GBTC) into an exchange-traded fund.
- Bloomberg seems to be changing its Bitcoin tune.
What’s next
We’re fixated on the ongoing altseason. And as evidenced by today’s charts –and this week’s, for that matter – we have good reason to be bullish on the alternatives to Bitcoin.
That’s not to say Bitcoin has been performing poorly; it’s just the King has been outgained by many altcoins recently – hence “altcoin season.”
As we noted in the Index Roundup, the W50X (that’s the Weiss Crypto 50 Ex-BTC) performed better than the index including Bitcoin, as many blue-chip altcoins shone this week. Also, the small-caps outperformed the mid-caps, which, in turn, beat the large-caps. The market is rewarding speculative bets right now.
This is exactly the type of price action we’re accustomed to seeing during altseason. This one is not disappointing.
Weiss Ratings does not accept any form of compensation from creators, issuers or sponsors of cryptocurrencies. Nor are the Weiss Cryptocurrency Ratings intended to endorse or promote an investment in any specific cryptocurrency. Cryptocurrencies carry a high degree of risk. The SEC, CFTC and other regulators have expressed concerns with the volatility of the market and the actions of sponsors of specific cryptocurrencies. Be sure to review their official consumer alerts such as the public statement on cryptocurrencies by the SEC.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.