Altcoin Volatility Rising, But Alt Season Won’t Arrive Until Bitcoin Volume Returns

Tony "The Bull" Severino

5 years ago

3 mins read

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The crypto market has reached a period of stagnation. Volume is at extreme lows, suggesting interest in the emerging class of Bitcoin and altcoin assets may be waning.

Volatility has begun to increase, suggesting that action could also soon be picking up. However, one crypto analyst says that an alt season won’t occur until volume returns to the market, and in particular, Bitcoin.

Crypto Market Suffers Period of Stagnancy Following Extreme Hype

Bitcoin’s meteoric rise took the world by storm, as people rushed to buy up the scarce crypto asset. The entire run-up made many millionaires along the way, which caused retail investors to try their hand in the market.

Since many felt they had already missed their chance to buy Bitcoin cheap, retail investors turned to altcoins. Getting in as early as possible meant that investors often looked to initial coin offerings, which were in large part built on the Ethereum protocol.

Bitcoin and Ethereum rising together caused a synergistic effect across the market, making it appear that anyone could become wildly rich just by finding the right altcoin.

Right as Bitcoin peaked, investors flocked to altcoins in droves, causing the price of the illiquid assets to explode. But those who bought in too late were left holding extremely heavy bags that are now sitting at as much as a 99% loss in some cases, and it’s left a bad taste in the mouths of retail investors who were burned as the bubble popped.

Now, almost two full years later, the crypto market is still stagnant, suffering from a general lack of interest. Bitcoin’s early 2019 rally started to bring some interest back into the market, but since then volume in Bitcoin is also drying up.

Volatility Returns to Altcoin Market, But Alts Are Waiting for Bitcoin Volume Trigger

However, volatility in altcoins is starting to ramp up once again, according to one crypto analyst. The analyst claims that it’s either due to volume being down for Bitcoin, causing a lull in interest and general boredom in the market, or lingering effects due to the China news pump back in October.

Still, the analyst is hesitant to claim an alt season is near, and believes that will not occur until volume returns to Bitcoin in a big way. Only then will the relationship with altcoins reverse into a positive trend.

https://twitter.com/ceterispar1bus/status/1196405399827734528?s=21

While Bitcoin has regained much-lost ground from its all-time high, other altcoins, even top altcoins like XRP and Ethereum, are down as much as 80% or more from their all-time high prices and have a lot more catching up to do.

Related Reading | Bye-Bye Bitcoin? Why the Altcoin Bottom is In

As past performance has shown, when altcoins do rebound, they’re likely to outperform Bitcoin by a large margin, suggesting that this period of stagnancy could be the buying opportunity of a lifetime.

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.