Crypto Bull Market Accelerates
|Dear subscriber,
Last week, we stressed how the Weiss Crypto Price Indexes blasted clear through critical resistance levels and how it paved the way for a further, accelerated move to the upside.
This week, that’s precisely what we got!
To casual observers, this rally, which began in mid-December, may feel like the big crypto rallies of 2019. But ...
The current rally is actually quite different: Back in 2019, it was led mostly by Bitcoin and the biggest names. This time, it’s largely led by the risker names. And this “risk-on” environment is a telltale sign of confidence returning to crypto.
To understand how, let’s start with a broad overview of the markets for the week that ended Thursday, Feb. 13. For this we turn to our Weiss 50 Crypto Index (W50), which was up 15.61%.
Looking at the space minus Bitcoin, we find that the Weiss 50 Ex-BTC Crypto Index (W50X) was up 22.43% on the week, led largely by Ethereum which surged 33%.
Splitting the markets by market cap, we find more evidence of the risk-on environment:
First, the Weiss Large-Cap Crypto (WLC) Index was up 14.74%.
The Weiss Mid-Cap Crypto Index (WMC) was up even more — 20.36% on the week.
And third, the Weiss Small-Cap Crypto Index (WSC) beat them all, up a hefty 28.61%.
Once again, the smallest (and riskiest names) are leading the charge higher ... the large caps underperform ... and the mid-caps track in between the two.
This is critical. So, it bears repeating:
-
Back in early 2019, Bitcoin pulled crypto markets from the depths of the 2018 bear market almost singlehandedly.
-
Now, one year later, precisely the opposite is happening: The altcoins are jumping ahead, while Bitcoin struggles to play catch-up.
Crypto traders call this “altcoin season.” I say ...
It’s the kick-off of the second major phase of the bull market that began just over one year ago.
It promises to be long-term and sustainable.
And, with the Bitcoin halving expected in May, it could heat up still further in the first half of 2020.
One caveat: All this has helped postpone a long-overdue short-term correction. But our model continues to signal overbought conditions for now. So, don’t be surprised if you see a price pullback that’s sharp but brief.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.