When RiskHedge chief analyst Stephen McBride told me he was launching a crypto service, my first thought was
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The timing could not be moreperfect.
The Crypto Market Is Sitting On The Launchpad
As Ill show you today, the charts tell me the entire crypto market is sitting on the launchpad.
The crypto space hasnt looked this primed to surge in a long, long time.
If youre new to RiskHedge, Im a professional trader. I use price, volume, and other charting indicators to identify assets before they take off.
Today, lets look at the crypto market from a traders perspective. As youll see, were about to enter one of the most exciting times to be a crypto investor.
Lets Start By Looking At Bitcoin
Its worth more than $1.1 trillion.
Due to its sheer size, bitcoin sets the tone for the overall crypto market.
When it rises, it usually pulls the rest of the market higher. When it falls, the opposite happens. Bitcoin drags other cryptos down.
And bitcoin has been strong lately. As you can see below, its more than doubled since bottoming out over the summer.
Not only that, it recently broke out to new all-time highs, which is bullish for the entire crypto market.
February 2021 was the last time bitcoin decisively broke out to a new high. It eclipsed $40kthen rallied 50% to over $60k in about two months.
In short, bitcoin should do very well in the coming months. But make no mistake.
“Altcoins” Will Deliver The Biggest Gains….
Altcoin is short for alternative coin. Any crypto except for bitcoin is considered an altcoin.
Some altcoins have delivered huge gains lately.Axie Infinity (AXS)has rallied 22,724% since the start of the yearHarmony (ONE)has soared 7,709% in 2021, andTerra (LUNA)has skyrocketed 6,514% over the same period.
The thing is there are more than 13,000 altcoins.
Some will revolutionize the world and command trillion-dollar valuations.
Many others are complete jokes I wouldnt invest a penny in.
Now, I cant share all those charts with you. However, we can get a sense of the overall altcoin market health by looking atEthereum (ETH), the second-largest cryptocurrency.
Specifically, we want to examine how Ethereum is performing relative to bitcoin. Thats what the chart below shows.
When this line is rising, Ethereum is outperforming bitcoin. When its falling, bitcoin is outperforming.
Ethereum spent nearly three years carving a base against bitcoin. It began climbing out of that base in recently.
Ethereum looks poised to outperform bitcoin in the coming months.
This is a great development for folks who own Ethereum. But its also bullish for the rest of the altcoin market.
You see, Ethereum usually leads the altcoin market. When it pulls ahead of bitcoin, its like giving the rest of the altcoin market the green light to rally.
And Thats Not The Only Reason Altcoins Are Poised To Rocket Higher
This chart shows the performance of the Altcoin Index vs bitcoin.
You can see that altcoins were outperforming bitcoin at the beginning of the year until bitcoin took the reins in May.
Now that altcoins have stabilized at a key level they appear to be setting up for another big run.
Having said all this, many investors are skeptical about investing in altcoins. Thats mostly because many altcoin projects never live up to the hype. But please understand:
Back in 2017, crypto projects would trade based purely on hype.
Today, its a totally different story. Crypto has truly gone mainstream.
More importantly, as Stephen has showed us over the last couple weeks, many of these crypto projects haverealuse in todays world.
Take Uniswap, a $12 billion stock market for cryptos. It lets you buy cryptos you cant easily buy anywhere else.
There are even crypto banks where anyone can lend, borrow, and earn interest on their crypto assets.
Stephen recently highlighted the crypto Helium, which sells hotspot routers you can install on your roof. You can then sell internet to nearby folks through this Helium router.
Then theres Axie Infinity. This gaming project already has more than 1.8 million active users worldwide. Its now worth more than video game giants Take-Two Interactive Software, Inc (NASDAQ:TTWO), Zynga Inc (NASDAQ:ZNGA), and Ubisoft, as you can see below.
Axies already soared a whopping 22,724% this year.
Dont get me wrong: There are lot of questionable crypto projects. And some downright bad ones.
But when you pinpoint therightaltcoins, you stand to make a lot of money during this crypto boom.
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Article By Justin Spittler – Chief Trader, RiskHedge – Mauldin Economics
Updated on Nov 3, 2021, 10:42 am