Altcoins were more successful than bitcoin during the recovery. Although bitcoin led the recovery effort, altcoins have made more money than any other indexes or Bitcoin. All of this has pointed to an altcoin season after a purported ‘crypto winter’ and the gains recorded so far in February are additional proof of this.
Small Cap Index Leads
Since December, the entire crypto market has been suffering from the downtrend. The second week of February saw double-digit gains in bitcoin and across all indexes. All three indexes with small-, medium, and large caps have returned gains thus far. However, the small cap is leading the charge, indicating increased bullish momentum for altcoins with smaller caps.
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Two weeks into February the small cap index experienced gains up to 19%. The index has seen a significant improvement since January, when it was the least-performing and suffered accelerated losses. Now, the index has seen a turnaround with gains of 4% for small caps.
Source: Arcane Research| Source: Arcane Research
Bitcoin, mid-cap and large caps all posted double-digit gains for January. The gains most notable were due to a single week in which prices surged across the cryptomarket.
Bitcoin is a great alternative!
Bitcoin investors have seen impressive returns over the same period, which is no surprise. While it might not reach the same heights as the small cap index, Bitcoin is one of the best gainers in this space. It is a result of the change in market sentiment, which has gone from extremely negative to the positive. This has been helped by momentum picking up.
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While trading is above the 20-day moving mean, but still below its 50-day average, Digital assets are now trading higher than their average. The current price of the Digital asset is $45,240. This will be the next resistance. A break above the second resistance level at $46,712 will be what really seals its entry into another bear rally. It is likely to remain between $43,000- $44,000 for the time being.
Source: BTCUSD on TradingView.com| Source: BTCUSD on TradingView.com
On the support side, bitcoin’s break below $43,000 will see its next support at $42,790. It is not far away, however, a further decline of $40,000 could be possible if the support level does not hold.
The digital asset still has strong sell signals near the 100- and 50 day moving averages. If bitcoin buyers don’t make substantial headway to hold the bitcoin price steady, it is more likely that bears will take control and pull bitcoin down into a new, longer-lasting downtrend.
Featured image taken from Forbes.