2020 Crypto Rally: BTC + 5 Altcoins
Disclaimer: the following information isn’t trading/investing advice. Superorder isn’t responsible for any results of your trading actions.
Finally! Nearly all major cryptocurrencies are surging, and traders expect the next all-time highs. Led by Bitcoin rally above $10,000 in February, various altcoins also showed double-digit percentage gains. Moreover, the whole market exceeded $300 billion. It seems that we’re entering the next significant bullish phase. What are the potential results? How should investors react? Let’s figure out with Superorder analysis!
Driving Factors
As with any major cryptocurrency market change, it’s not an easy task to identify basic reasons. For instance, you can say that it’s just a giant recovery after the crypto winter. Alternatively, several factors move prices higher:
- Bitcoin halving in May. It’s one of the most anticipated events. Halving will reduce miners’ rewards to 6.25 BTC per block, as well as cut coin generation rates. Historically, halvings led to significant price jumps.
- Coronavirus outbreak in China. This disease is a threat to world economies. It restricts limits international trade and prevents large Chinese firms from working with partners. As a result, investors hedge risks by purchasing crypto.
- Interest in CBDCs. Known as central bank digital currencies, these assets may disrupt traditional finance systems. Leading representatives from Europe, the USA, and other regions are interested in CBDCs today.
Apart from these forces, you can name the growing adoption of crypto assets by institutions, charity initiatives, and general popularity. The result is the same — rates rise while bulls outplay bears.
Which coins benefit the most from this surge? Let’s reveal them!
BTC
Idea: watch for volume and maintain longs with SLs below $10,000.
Bitcoin shows great performance. Recently, it formed a golden cross so the chances for further growth are high even despite not as promising RSI. Bulls try to move through $10,300–$10,400 to turn these levels into new support. Still, they act as the main resistance. After fixing above $10,400, we can go to $10,500, $10,900, and the major downtrend line at $11,500. Otherwise, bears can push rates below $10,000.
What’s interesting, the dominance of the first cryptocurrency dropped from 68% to 62% since January. It means that altcoins are moving higher. Check the most promising of them below!
ETH
Idea: invest in the current uptrend with the major goal at $300.
Ethereum replicates the success of BTC. It sets new and new 2020 records, exceeding $280 for now. Bulls still have enough power to push the price higher, above $300 and towards $360. Partially, it’s possible because of the low take profit actions at $240 and $260. However, RSI is highly overbought which may lead to drops soon. In this case, we should watch the level of $235 and $210 where SLs are located.
XRP
Idea: monitor the long positions and RSI, set SLs to protect from reversal.
Ripple faces even better results than BTC or ETH. It completed the rounding bottom pattern by breaking the major resistance at $0.31. The coin features the highest price surge since May 2019. Now, bulls focus on $0.34 with the core goal at $0.40–$0.45. Most likely, the trend will continue but bears may try to return to $0.31 and push prices to the moving average at $0.27.
XTZ
Idea: it’s a huge vertical rally, watch for take profits and correct entry points.
Tezos started skyrocketing since mid-January and set a new ATH at $3.61. Now, it corrected a bit to $3.38–$3.40 but still can continue the run. The thing is that bulls buy even the tiniest dips and don’t let bears move prices down. The key level now is $3.6 after which high jumps towards $4 are possible. Any change can push prices higher. As well, BTC performance can also affect Tezos.
ADA
Idea: the coin needs one volume impulse to skyrocket but may correct soon.
Cardano is moving in a gradual uptrend since the winter bottom. It crossed the 200-day average and now focuses on new highs at $0.08 and $0.1. The catch is that the run exhausts as bulls lose their power. RSI is deeply overbought so bears may try pushing towards $0.06 and 0.055. The first goal of sellers is a good place for SLs. Cardano may feature another surge with a massive volume injection.
NEO
Idea: follow Fibonacci retracement to find out support levels.
NEO jumped from the double bottom set in December 2019. Now, it already doubled the price and featured a new 2020 price high by exceeding $16. The next targets are $17.5 and $19.6 but insane levels of $25, $30, and even $40 are possible. Bulls control the situation now. In case of a reversal, rates may sink below $14 and $13. Long investments seem viable but you should maintain SLs, of course.
Conclusions
What we see now is a result of several factors combined. The huge interest of various traders and investors is based on economic news from the fiat world. Potentially, this crypto surge may continue for several months and even years as it compensates long bearish trends of 2018. Moreover, enthusiasts think that the new altcoin season is starting now. It’s a good moment to invest in, huh?