Crypto investors are scratching their heads this week, as a key indicator suggests that Bitcoin is about to take center-stage once more — even as Cointelegraph Markets Pro subscribers had the opportunity to take major profits on altcoins such as Rally (RLY), Polygon (MATIC) and Ampleforth (AMPL).
Since Markets Pro was launched in January, the Altseason Analysis indicator has leaned heavily toward altcoins — and indeed, the performance of an evenly-weighted basket of the Top 100 altcoins has strongly outperformed holding Bitcoin since Markets Pro began tracking these metrics on January 3.
Holding Bitcoin: 74% return
Holding Top 100 altcoins: 432% return
Best-performing time-based VORTECS™ strategy: 1,843% return
Best-performing score-based VORTECS™ strategy: 1,367% return
The Altseason Analysis, developed for Markets Pro by data analytics firm The TIE, works similarly to the VORTECS™ Score, but adds two additional variables including press release data from tokens and exchange listing data.
It compares current market conditions to those in the past, to assess whether the market currently looks more bullish for altcoins or bitcoin for the next 14 days.
The VORTECS™ Score includes sentiment analysis, tweet and trading volume, and price action as components of the algorithm — which are then weighted according to a proprietary formula based on how similar these are to historical conditions. If there is a similarity in these factors, the score will be higher when historical precedents have most consistently led to higher prices.
Although the Altseason Analysis indicator has since swung back towards altcoins and Bitcoin’s market dominance has dipped below 50%, the market may be preparing for a surge in the largest cryptocurrency as investors rotate out of large cap alts and back into BTC.
However, the swing towards Bitcoin certainly hasn’t deterred crypto investors from seeking out altcoins for rapid profits.
Polygon (MATIC) Analysis
As seen in the chart below,…