- Rotation of capital from Bitcoin and Ethereum finally entering the altcoin market.
- Cycle analysis indicates a new bull market for altcoins to begin.
Cycles indicate a new trend for altcoins
If we look at the price action of Cardano (ADA), EOS, 0x (ZRX) or Zcash (ZEC), we get a pretty clear view of the direction the altcoin market has gone over the past 30+ days. If we look at Cardano’s chart (above), we can see that Cardano has moved down a significant amount (over -47%) over a 33-day period. A bear move over a 30-day period is not uncommon for Cardano or any other major cryptocurrency in the altcoin market. The move is almost an entire retracement in both time and price that Cardano had from all of March. To simplify the explanation, one could just say that Cardano had a big bull run all of March and then April gave it all back, and ended up where it started in March. The current Law of Vibration cycle began just 4 days ago on May 2nd. This is an important and powerful new cycle that will assist in initiating a new bull move. The majority of the altcoins I study all have a new Law of Vibration cycle that began either a week ago or in the next few days. I also want to call your attention to the VPOC (Volume Point of Control) – the red horitzonal line. The VPOC represents the most volume traded at a particular price. In Cardano’s case, every time it has tested the VPOC of 0.00001127, it has found support. Today is the third consecutive day that Cardano has tested this level and it has bounced strongly off of this support level. Also note that the VPOC from March of 2018 to May 6th of 2019 (today), the VPOC is 0.00001117.
Rotation of Capital
One of the most important signals that the entire cryptocurrency market is growing is if there is a clear rotation of capital from Bitcoin (possibly including Ethereum) into the altcoin market. A behavior we have recently seen in Bitcoin over the past 30 days is its flat trading periods followed by…