Major Crypto Assets Are Preparing For Powerful Volatility Against Bitcoin

Tony "The Bull" Severino

5 years ago

2 mins read

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Although there were some early signs that an altcoin season may be upon us, top crypto assets like Ethereum have been reverted to weakening performance against Bitcoin.

However, a big move is potentially coming, as the Bollinger Band Width of most major crypto assets on their BTC trading pairs is indicating a distinct lack of volatility that is bound to break with an explosive bang.

Major Crypto Trading Pairs Against BTC Set Record-Low Volatility

The cryptocurrency market appears to be at a bit of an impasse and doesn’t know where it wants to go next.

Bitcoin continues to struggle with resistance above $10,000, while altcoins are still more than 80% away from recovery to all-time high prices.

Sentiment in the asset class is improving, but prices remain constrained to lower highs that typically signal weakness.

Bitcoin interest has been picking up post-halving, and institutions seem to finally be buying in. But it’s still not enough. On BTC trading pairs, altcoins everywhere are stagnant, repeatedly testing lows but unable to fall lower.

The lack of momentum has led to most major cryptocurrency assets to reach extreme lows in terms of volatility.

Lots of majors with fairly tight daily Bollinger Bands$LTC $XMR $TRX $EOS $IOTA $XLM pic.twitter.com/a1iPrWITcP

— Goomba (@im_goomba) May 28, 2020

Is Tightening Bollinger Band Width A Prelude To Altcoin Season?

Bollinger Bands are a technical analysis indicator designed by market analyst John Bollinger, and feature a simple moving average and two standard deviations of that SMA.

The top and bottom bands indicate volatility within price action, as they expand and contract. The more wild the price action, the wider the bands get.

When things get stagnant and markets trade sideways, the Bollinger Bands reduce in width. This coiling effect releases a powerful explosion to either the up or downside, spending on the trend.

Major crypto altcoins like Monero, Litecoin, and many others are showing some of the lowest Bollinger Band Widths in the asset’s history, suggesting that a massive break is possible, and one that will lead to a strong return to volatility.

Altcoins are extremely oversold on BTC trading pairs and have already touched lows from the early days of the crypto bubble. Many remain down over 80% from all-time high prices, while Bitcoin trades at close to 50% from its record.

And while Bitcoin deals with such a critical level at $10,000, a boost in altcoins may be the path of least resistance for the crypto market. A breakout to the upside on these pairs doesn’t necessarily indicate a crash in Bitcoin, but it could suggest a proper altcoin season will be coming soon.

The alternative is that altcoins fall further, with many of them possibly falling back to pre-bubble pricing against BTC.

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.