The Next Wave In Crypto Is Beginning To Form

The Sets Are Beginning To Roll In

It seems that retail investors are beginning to reawaken to the idea of investing in Bitcoin and Crypto once again. This is at least what I am beginning to see in my own hometown. The recent drop into the lower 30K zone left a lot of new and potential investors rather concerned about where the market was heading. Support was however impressively resilient and it wasn’t long before BTC began floating between $38K and 40K. The recent surge up to $47K has clearly served as a confirmation of strength. It is still not really a “bullish” confirmation but one of at least confidence and stability. This appears to be significant enough for retail to begin testing their toes in the Crypto waters yet again. Altcoins have been hit fairly hard, so there is at least the hope that there will be a decent altcoin season triggered within the coming weeks.

You Can Only Fool The Market So Long

The “traditional” voices of fear were rather vocal during the last couple of months. Despite how bearish the patterns looked, my response was that this would not result in a traditional bear market. My view was that these patterns would not reach their bearish targets but that we would ultimately experience a reversal, or at worst a sideways movement. A few months ago I published my view of Bitcoin remaining in a certain trading range for an extended time frame, which it did. We are now beginning to see modest moves up but I am not getting excited just yet. My view is that Bitcoin will remain at these levels until May. We could see brief spurts upwards, even into the 50K zone. I do however only envision a true breakout from these levels in May. My study of the charts and data points to a definitive and significant breakout in May. I maintain this view even as BTC is trading at $47K. It appears the fear-mongering did not work this time and you have to wonder why.

Global Chaos

The macro picture continues to provide an enormous amount of distrust in traditional assets and investment vehicles. Citizens from across the globe are beginning to realize how fragile the traditional finance sector actually is. These risks appear to be of greater concern than the volatility of Crypto assets. In my recent article, “Bitcoin & The Macro Picture”, I outlined this very likely scenario, which is now beginning to play out. I think we may see higher levels before we enter into a period of brief sideways price action. I think we could see ETH hitting $3800 before a modest correction. My viewpoint is that Bitcoin will continue coiling up before we experience a solid breakout in May. This ideally means that BTC will continue in this range, even though it is beginning to broaden to the upside.

Bullish On Altcoins

In my February article, “Is It Time To Begin Thinking About Alts”, I suggested that the accumulation of Altcoins was very much on the horizon and especially an option once the $44K zone is broken and confirmed. I did however accumulate while BTC was below $40K, as my view is extremely long-term. Even if better bargains presented themselves in a further drop I would have continued to buy alts with my passive income. I do believe that we are extremely close to a decent breakout, ultimately pushing BTC past the $60K level and beyond. This is not investment advice but my take on where we are headed in the coming months.

Thanks for joining me and remember to do your own research, especially when dealing with altcoins. Until next time!

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