The current market conditions in the cryptocurrency space are very unique. For the first time in over 15 months, there is no obvious trend in Bitcoin and most of the major altcoins. For all of 2017, we were in a bull market comparable only to the tech bubble in the 2000’s and few other select periods in the past few centuries. In 2018 we have seen a major retracement in all the major cryptocurrency names. Now that everything has stabilized, a buying opportunity in Bitcoin and some other altcoins may be presenting itself. I recently shared my thoughts on the best altcoins and the current cryptocurrency market conditions on CNBC Africa:
To summarize my thoughts:
NEO
NEO, from a technical standpoint, is one of the best altcoins out there right now. It has broken out of its down trend line, and just recently held the retest of this level. Out of all the altcoins out there, we are seeing a lot of relative strength in this name. It is recovered strongly since its big dump to the 60’s in early February. It appears that this rebound is more than just a dead cat bounce, and is showing some signs of a major trend change. We recently saw some signs of strength with a nice pop almost to the 150 level. Keep this on your watchlist in the upcoming weeks for some more potential upside if it can hold this retest of the breakout level.
Need to See Strength In Bitcoin For Conviction
Bitcoin throughout last year was the trend setting cryptocurrency. Even the best altcoins still follow Bitcoins trend this year. It will be hard to see even the best altcoins like NEO and ETH having much upside this year if Bitcoin is rolling over. Maybe we will start to see some divergence in altcoin trends and Bitcoin later this year, but at the moment they are very correlated. To have the highest probability trade in the crypto space, you want to see Bitcoin following the same trend in the altcoin you are looking to trade. It is similar to trading high beta names in the stock market. If the SPY is in a downtrend, it decreases the probability of these names following through to the upside. The best altcoins will follow through if you can align their patterns with the trend of Bitcoin.
Want to give a shoutout to my man Ran NeuNer for having my on his show Crypto Trader which takes place on CNBC Africa. Follow him on Twitter @cryptomanran
Kunal Desai is an American day trader (stocks and cryptos) and founder of Bulls on Wall Street and Bulls on Crypto Street, two online trading academies and informational publications. He has been featured in many high profile publications like Inc, Forbes, Buzzfeed, and Fortune. He has spoke at trading and business events all across the World.