Altcoins in 2022: The best yet?

–just up?– For now, 2022 is not the year all crypto enthusiasts have been waiting for. After an all-time high at the end of 2021, Bitcoin (BTC) has fallen towards its support. On the way, it found buyers for 33,000 dollars. At such times, Bitcoin sweeps everything in its path and altcoins suffer. After a 52% drop in BTC from its local peak, where are the altcoins? 2021 has been an interesting year when almost all altcoins exploded. Could 2022 be a good ending for us? Let’s see what the charts tell us!

Ethereum vs Bitcoin: Ethereum is winning a war, but who will win the war?

Studying the Ethereum/Bitcoin pair is rich in lessons when looking at altcoins. Ethereum Leader of this category. He has poor performance Bitcoin from 2018 to 2020. In this period, altcoins have suffered.

– Advertisement –

The week of February 10, 2020, Ethereum signed a “W” against Bitcoin. is a structure reversal very strong. Then there are the “W” sequences that outperform the #1 altcoin in terms of capitalization against Bitcoin. During this period, almost all altcoins were able to express themselves.

And now, Bitcoin or Ethereum?

The first stop (Fibonacci 0.382) is a realistic target for any asset following an up or down move. As we can see, the Ethereum/Bitcoin pair blocked at this level. Interestingly, the duo formed ascension structures in contact with this first stop. Here again, we observe the “W”, which is a sign that Ethereum still has some below its floor. The latest weekly triggered a possible ongoing movement – target is also called AB=CD – who will bring the couple 0.12. In case of a break at the lowest point of the W found, it will be considered invalid. 0.055.

– Advertisement –

The market is going through a tough time, but as of this writing, the Ethereum/Bitcoin pair has nothing to do with the momentum seen in 2018. As long as it’s low at 0.055, Ethereum continues to rise against bitcoin. This element is a very good sign for altcoins that need a strong Ethereum to express themselves.

>> Bitcoin is fluctuating so we love it! Get started with the FTX benchmarking platform (affiliate link)

Could Altcoins Rise Again in 2022?

Altcoins are in trouble right now, but they may not have had their last word.

Capitalization of altcoins:

The market crash of May 2021 didn’t spoil altcoins the way the price did a new high few months later. And this scenario is likely to repeat itself in the coming months. For this, the Total 2 price will need to be confirmed by configuring the same as July 2021 (brown).

To do this, capitalization should preserve the lowest value. 856 billion dollars and then break 1.2 trillion dollar. The scenario happens with the green arrow on the chart. Otherwise (red), it will definitely be necessary to hold. 600 billion capitalization

Altcoin/Bitcoin Comparison

The chart shows altcoins against Bitcoin. It is interesting to note that it is dynamic. downtrend On a weekly basis in 2018. The lows and highs are higher and higher in 2022. there are dynamic there is nothing to see With the person we knew in 2018.

This pair helps to show that altcoins are not able to beat altcoins. resistance It was created in 2018. Four years later, this one that happened in brown still stands. this momentum up It’s under resistance and that’s encouraging. It will be necessary to break this level for any real hope. sub season As in 2017-2018. If you’re interested in the topic and want to learn more, here’s a YouTube video made.

Bitcoin’s dominance is highly observed by market participants. The graph shows where is the capital going.

Dominance fell from late December 2020 to mid-May 2021 74 also 39%. This drop showed the interest of players in altcoins. Since May, this is not really the case anymore. We can say that we are in tidy Between 40% and 48% dominance. As long as the range is available, it is impossible to know where the capital will go.

Bitcoin dominance rebounds three times on boost 1. For those who want to see altcoins explode, it will be necessary to break this support. 40%. The more an environment is tested, the more fragile. about the next 36%. The last hurdle before what could be a true subseason. If it does, this will show the confidence of the players and thus the appetite for extremely risky assets. Using the Fibonacci extension, a breakout of the downward range gives as a target between the following. 35% and 30% dominance.

Support 1 and 2 were created in 2018. Note that in 2017 the situation is similar. broken and dominance later lost more than 60%. We live in an era where altcoins are increasingly taking up space with well-defined sectors (Defi, Metaverse, P2E, etc.). There’s more and more solid projects who settles and who can capitalize on Bitcoin.

In summary:

The elements presented in the article show that this is the case. Different from the 2018 bear market :

• Ethereum/Bitcoin: Ethereum remains bull against bitcoin. Considering the transition from Proof of Work to Proof of Stake for June 2022, it could continue to outperform Bitcoin in the coming months.

• Total 2: can capitalize altcoins a new high As in the summer of 2021.

• Total 2/BTCUSDT: double under resistance with some ascension structures. breaking resistance, strong signal for altcoins.
• Bitcoin dominance: it is close to support. If the range is broken to the downside, this is also a strong signal for altcoins.

There is still some uncertainty about altcoins. As always with trading or investing, you put the odds on your side before making a decision when managing your risk. The market is definitely bleeding, but not much is missing for altcoins to rise. The charts are encouraging and far from what the market experienced in 2018.

Afraid of succumbing to FOMO? Start by making sure you operate in a safe environment that will allow you to formulate a solid investment strategy: Sign up without delay on the FTX reference crypto exchange platform and enjoy lifetime discount on your transaction fees (affiliate link, see terms on official website).