The analyst community has become very cautiously optimistic of late, refraining from grandiose projections or near-term certainty over the perturbations of Bitcoin or any of its altcoin brethren for that matter. The alleged scandal with the management of Tether and Bitfinex was a bolt from the unknown, an event that was totally unpredictable, and as such, it called into question any forecasts whose ink had yet to dry. For that reason alone, it was a surprise when an analyst with a 50K following on social media was so bold as to pontificate a major surge in crypto prices, excluding BTC, in 48 hours.
It is rare that an analyst would ever pick so short a timeframe, particularly during a period when the majority of the analyst community is, in a word, “gun-shy”. Galaxy, a celebrated crypto analyst with over 50,000 followers on Twitter, waiting in anticipation for his next pronouncement, did not disappoint. He senses a significant surge approaching beneath Bitcoin, no less, and has advised his ardent fan club that: “There may only be a couple of days left to buy altcoins at a “discount” before they begin surging significantly higher. Probably less than 48 hours to buy altcoins at a discount.”
Galaxy has been focusing on the ebbs and flows in the crypto market, especially what is happening behind the scenes as Bitcoin went on its recent three-month tear. BTC has re-established its dominance in the crypto market by increasing its market share over the preceding months from 50.5% to a monstrous 56.5%. Galaxy, however, has noticed that, after each major milestone is passed, there tends to be a period of consolidation, and during that period when BTC buyers catch their breath, investors have gained the confidence to start buying altcoins and push them ahead, as well.
DonAlt, another popular crypto analyst on Twitter, has been following Ethereum (ETH). The “ETH/BTC” has been on a downward track for months. It presently rests at $0.029, but DonAlt is targeting $0.036: “$ETH Pretty simple trading range setup developing here. Currently at support – Aiming for resistance. Wouldn’t want to see it close below green and if it breaks the recent low it’s probably reaching quite a bit lower. Definitely the most attractive alt to me right now.”
What is Bitcoin doing? BTC has had a surge of its own over the past 24 hours, picking up another 3.5% and cresting over $5,900. The analyst community expects it to bust through $6,000 resistance in the near term. The $41 million hack of the Binance exchange had little impact on Bitcoin prices, but it knocked altcoins for a loop, most likely because Binance is know for creating liquidity for a numerous listing of crypto pairs. It only deals in “crypto-to-crypto” trades. No fiat pairings are offered. How big a “loop”, you ask? Following the tragic announcement, altcoins tumbled anywhere from 4% to 10%.
In the meantime, the case is building for another Bitcoin surge, not an extended period of sideways trading or consolidation (choose your preferred phrasing). Jim Iuorio, managing director of TJM Institutional Services and a veteran futures and options trader, thinks “FOMO” is already kicking into investor mentality. On a recent appearance on CNBC, Jim posited that Bitcoin mighty have more steam in its engines:
I do think it does. And I think it’s mostly an emotional trade. I think it’s FOMO. People missed out when it traded up to $20,000. I think the psychology behind it could be the same now. When it eclipsed $4,000, I think that started to kick in mildly. If it eclipses $6,000 again, it might happen again.
Jim added:
If it trades back to $5,810 in the June contract, I think that’s a spot to buy. One of the things I liked is that earlier in the day it tried to plunge the lows and it was immediately rejected. To me, it seems like the upside is the easiest path with a target of $6,060 on the upside.
Futures contracts are one thing, but the actual market is another… Bitcoin is now trading at $5,981… Go figure.