The altcoin market has been ablaze all 2020 thus far, after the total crypto market and many individual altcoins broke out from downtrend resistance and went on massive rallies.
Next, altcoins are preparing a global breakout of major, horizontal resistance, which if holds could lead to a return of alt season and richest beyond investor’s wildest imaginations.
Altcoin Market Prepares For Break Above Critical Overhead Resistance
Across the top ten cryptocurrencies by market cap, altcoins have been exploding in value, with some gaining over 400% during their recent local rallies. Ethereum, Litecoin, and even XRP are now through their diagonal downtrend lines.
Related Reading | Altcoin Market Preparing Shocking Disbelief Rally According to Wall Street Cheat Sheet
The collective bullish price action across the altcoin space, is causing the total altcoin market to contest with horizontal, overhead resistance – potentially the last remaining hurdle before a new bull market is in full effect.
$ALTS Breaking out, globally. Just want to see a few days above 90B for confirmation.
Then it will be 24/7 charting madness and crazy times again. You ready? pic.twitter.com/25y0S6BaSI
— Trading Tank (@TradingTank) February 3, 2020
According to one crypto analyst, if the altcoin market cap breaks out and holds above $90 billion USD for a few daily candle closes, the market will be primed for additional, powerful upside in the coming months ahead.
It’s revived discussion across the crypto community about an “alt season” coming “soon.”
Alt seasons are often short, yet explosive periods of time where altcoins outperform Bitcoin by a significant margin and often go on rallies that result in over a few thousand percent gains.
altseason soon. that's the tweet
— Crypto₿irb (@crypto_birb) February 2, 2020
History Repeats: Is Alt Season Finally Upon the Crypto Market?
The idea of alt season has turned itself into a meme after each time it was mentioned throughout 2019, it almost immediately led to a deep selloff in altcoins.
Before the breakout occurred, the bottoming pattern according to another analyst claimed appeared to resemble early Bitcoin price charts, suggesting that “life-changing wealth” could be ahead for altcoin investors.
If an alt season does occur, that’s exactly what will happen if history repeats itself.
Altcoins have been pumping like crazy as of late
But this is nothing compared to the euphoria and FOMO that has yet to come
In 2017, it took Litecoin only 5 days to rally from $96 to $420
The euphoria stages of a bull market come at you fast
Be prepared$BTC #Bitcoin #Crypto
— Rekt Capital (@rektcapital) February 2, 2020
During previous alt seasons, Litecoin rallied from $96 to $420 in just five total days. This amounts to a 337% increase.
In roughly the same amount of time, XRP rallied from 16 cents apiece to as much as $3.50 per XRP token, resulting in an over 2,000% gain for Ripple investors.
Ethereum during this time rallied from $300 to $1,400 per ETH. A year earlier each ETH token was just $5.
It wasn’t uncommon to see such incredible returns on investments. It was this buying frenzy that caused the crypto hype bubble in late 2017 – a bubble that popped and caused much of the astronomical gains to be completely erased.
Related Reading | 10 Factors Confirm a New Crypto Bull Market Has Officially Begun
Although altcoins are pumping “crazy as of late” like analysts are claiming, their primary use remains little more than speculation. So the next time your altcoin portfolio reaches gains of 1000% or more, remember to consider taking some profit this time around – because there’s always a chance what goes up, comes back down. The post appeared first on NewsBTC.