With this first piece solely dedicated to market analysis, TradeSanta is launching the expert opinion series. Which altcoins will go up first for the next couple of weeks?
Will Bitcoin’s price see the movement toward the upside in fall? Where should you look for the most stable alts? Joel Kovshoff, Athena Enterprise Software CEO and the founder of Rubico, will address these and many more questions today.
Altcoins are going to stay quite stagnant for the next couple of weeks
A lot of altcoins have been in a bull trap. What I mean by that is a lot of them got pumped last week (Sept. 16 – 20). Which made people think that a long-awaited alt season was here. That being said, it’s a bull trap because I have no reason to believe that. Especially with Bakkt coming and especially with the federal interest rate getting cut.
We also have an inverted yield curve. And right now there is a huge amount of money being printed for quantitative easing in the United States amounting to $200 bn. Will this affect alts potentially? I believe more so on Bitcoin and precious metals. Actually, in the next 2-3 months, we should start to see those pick up.
You won’t see the whole market to turn green like it did last week (Sept. 16 – 20). I believe the high-cap altcoins will go up first, such as Litecoin (LTC), Ethereum (ETH), Bitcoin Cash (BCH), Stellar (XLM).
To conclude, for the next couple of weeks with all the factors put in play, with the federal rate cut, with quantitative easing and all the things that are playing in, I think, altcoins are going to stay quite stagnant and not going to jump hundreds of percents.
But I do believe Bitcoin will be the first one and will demonstrate the all-time high before we see a true alt-season. What we really need to see for altcoins to move – they won’t move in the next couple of weeks organically, in my opinion, – we need to see people buying Bitcoin and using cryptocurrencies.
Bitcoin’s price in fall will start to rise
On a micro-scale, over the past week, we were in a short-term corrective secondary movement on a bull trend. On a macro-scale, though, we’re still in a bull trend. It’s just these corrections take longer than people like, and with the most recent dump we might say we now have a primary downtrend clearly on a higher time frame, that is if the price does not bounce.
I fully anticipate us not moving in the markets till the mid of October, the start of November.
We don’t have an ETF anymore, which I don’t think matters. But what I do see is a lot of things in terms of quantitative easing and the inverted yield curve, and federal interest rate cuts. These things will take time, they always do. In around two months, I think they will start affecting the economy and start to show the true strength that Bitcoin has. Because it will be similar to precious metals, gold, and silver, – things people look at to hold a store of value.
Due to a limited supply, and the stock to flow ratio, Bitcoin has upside for someone who wants to put their money in something that can store their value and is still 2 million times its initial price 10 years ago.
With so much money printing, if my numbers are correct, I believe, over the last week (Sept. 16 – 20) they’ve printed $200 bn. That’s a lot of money. In the aftermath of the crisis in 2008, there was just about $800 bn given out as bailouts – to put that in perspective. It’s quite a substantial amount of money.
I expect that Bitcoin’s price in fall will see movement toward the upside, even with its more recent $2000 move to the downside. I also believe that as Bitcoin starts to regain momentum it will have a nice movement, some of the altcoins will start doing more marketing.
To see Bitcoin fall to $6000 would be pretty epic for someone who wants to see a dip as a buying opportunity. But I don’t see us getting that low, maybe as low as $7300.
Coins that have a high upside potential
If you’re looking for interesting coins, go to Coinbase and look at theirs. If you’re in the U.S. you know that the most stable altcoin volume, comes from the markets in the U.S., so you want to look at coins that are on and approved for the U.S. exchanges.
Coins like Ripple (XRP), Bitcoin Cash (BCH), Ethereum (ETH), Bitcoin (BTC), Cardano (ADA) and Stellar (XLM), all of those have this upside potential because of that one factor. The factor where you have regulatory approval.
I also like exchange tokens, the Binance token (BNB), the Huobi token (HT), because they have strong revenue models behind them. Exchanges pretty much always make money if they are doing it right. I am really a big fan of projects that have revenue models behind them that would actually value the token.
When it comes to trading, the stuff that I find the most interesting is on BitMEX. There are others that I like, I’ll get into them in our next pieces. But I can definitely tell you that there are others with revenue models that are real. They will provide very large value to people who invest their time in understanding what each token platform is all about.