Key Insights:
Amid a bearish trend that has affected the cryptocurrency market over the past 24 hours, resulting in significant losses for digital assets like BNB, a well-known Bitcoin trader has presented a different perspective.
This trader, who goes by the username 'Moustache', believes that the altcoin market is on the cusp of a major breakout. Their conviction is based on a rare pattern that is about to form on the monthly chart of altcoins.
Moustache specifically mentioned the occurrence of a 'Golden Cross' on the 20-month Simple Moving Average (SMA20) for altcoins.
This technical indicator, which has only happened twice before in the history of altcoins, is seen as a signal for the beginning of a significant bull market.
The Golden Cross is identified when a short-term moving average crosses above a long-term moving average, and traders often interpret it as a sign of a bullish trend.
In summary, despite the recent bearish market, Moustache believes that the altcoin market is poised for a major rally based on the formation of a Golden Cross on the monthly chart.
Moustache pointed out in his tweet that a chart displaying the instances of a golden cross appearing on altcoin's SMA20 in both 2016 and 2020 revealed a bullish trajectory.
Furthermore, Moustache mentioned that the relief rallies observed in the crypto market earlier this month might pale in comparison to what is to come in the upcoming days.
It is worth noting that Moustache is just one of many analysts who have predicted a forthcoming bullish trend in altcoins. Additionally, renowned crypto analyst Michaël van de Poppe stated three weeks ago that the current cryptocurrency prices present a favorable investment opportunity.
He drew similarities between the current state of the market and the economic conditions following the conclusion of the bear market in 2018, forming the basis of his optimistic outlook.
The occurrence of similar events in both 2016 and 2020 has caught the attention of investors and market observers, as it signifies the start of altcoin bull markets.
This is significant because it indicates a change in market dynamics, with altcoins moving independently from Bitcoin's trajectory.
Unlike previous cycles where altcoins lagged, this early movement suggests a shift in the market.
Furthermore, the MACD for the altcoin market cap is nearing a breakthrough above the zero line, which further confirms the growing positive momentum. This is a technical indicator that reflects the strength of the market trend.
At the time of writing, Bitcoin was trading at $42,690, experiencing a 1.32% decrease in the past 24 hours, according to CoinStats.
This suggests that altcoins are leading the current market charge, which is a deviation from the usual pattern where Bitcoin dictates market movements.
Since October 1, Bitcoin has seen a surge of over 60%, primarily driven by decreasing Treasury yields and expectations of potential approval for spot BTC ETFs by the US Securities and Exchange Commission.
Currently, Bitcoin is up 161% every year, while ether, the second-largest cryptocurrency, is trading 88% higher.
According to CoinCodex, a well-regarded platform for cryptocurrency predictions, they anticipate a notable 30.98% increase in the value of XRP.
Their projections suggest that by December 21, 2023, XRP will reach a value of $0.816739.
This positive forecast is supported by current sentiment indicators, which indicate a neutral outlook based on technical analysis, but a sentiment of "greed" among investors with a Fear & Greed Index score of 67.
In the past 30 days, XRP has had 16 green days out of a total of 30, indicating a positive trend of 53%. Additionally, the price volatility of XRP during this period has been 2.76%
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.