Proper Altcoin Season While Bitcoin Drops Has Traders “Cautious”

Tony "The Bull" Severino

1 year ago

3 mins read

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The recent “altcoin season” playing out over the last several days while Bitcoin downtrends, has traders “cautious” about what could be next. As for what could possibly lie ahead that has crypto traders so fearful, is an altcoin-led blow-off top that sends crypto back into the troughs of a short-term bear phase.

Here are the unique market factors at hand that could give the crypto market reason to proceed with caution.

Cautious Crypto Trader: Beware Of Possible Blow-Off Top In Alts

Bitcoin is now trading at $35,000 after making another attempt to push above $40,000 yesterday. $5,000 per day candles in either direction are now the norm in crypto trading, but that’s not what has some top analysts and traders spooked about the recent price action.

Ever since the peak of the 2017 bull market, have crypto investors been awaiting an altcoin season to bring enormous gains in a matter of days once again. Life-changing wealth was generated, then lost as quickly as it arrived.

The spark to kick this off was supposed to be Bitcoin passing $20,000 but that feat came and went, and only now are altcoins popping off while Bitcoin has begun to downtrend. It has a top crypto trader “cautious” about a potential “blow-off top” in altcoins. And here’s why.

Chainlink and Polkadot are beginning to eclipse Bitcoin | Source: BTCUSD on TradingView.com

Altcoin Season While BTC Drops Has Marked Past Crypto Market Tops

Crypto trader Johnny Moe is approaching the current price action across crypto, and for good reason. Bitcoin is downtrending, all while altcoins are soaring. Polkadot gained 75% in two days, and Chainlink just set a new all-time high.

Bitcoin and altcoins tend to uptrend together, the handful of times when the two asset types diverged, it has signaled a top was in. Altcoins were recently surging alongside Bitcoin as it pushed above $40,000 and setting new all-time highs, but the latest rally in altcoins is taking place while the leading cryptocurrency by market cap is turning down.

Bitcoin’s rejection at $40,000 recently is the first higher low on daily timeframes in months, and if a lower low is put in, the cryptocurrency will have by definition fallen into a downtrend. Altcoin price action continuing to fly while Bitcoin dives, could be a repeat of the conditions that caused the 2017 peak.

If this is indeed the top, it might be bad for Bitcoin, but altcoins could have another two more weeks left of momentum and gains before the blow-off top is complete and the rest of the crypto market turns around.

Is this trader right to be cautious? Or is bear market PTSD getting the best of them, and this latest “downtrend” is just another opportunity to buy the dip?

Featured image from Pixabay, Charts from TradingView.com

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.

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