The Golden Cross theory seems to have sent every crypto-enthusiast into a tizzy. Ethereum also exhibited the Golden Cross, which usually indicates a change in price trends. In light of the prevailing the bear market, the cryptoverse on Twitter speculates that this could be the start of a bull run.
Ethereum’s daily chart shows a recurring pattern which is underway. This pattern resembles the move which happened back in 2016-2017.
The chart shows a 1-2-3-4-5 pattern formed between 2016-2017, which led to the bull run and caused the price to peak in 2017. A similar pattern was evolving at press time, which could indicate a bull run in the immediate future. Additionally, the volume seems to be miming the previous pattern.
Although Ethereum is the second largest cryptocurrency in the world by market cap, it still hasn’t sufficiently decoupled from Bitcoin. Altcoins being coupled to Bitcoin is a disadvantage because they will follow Bitcoin’s lead in both pump and dump movements, regardless of the development happening in their respective ecosystems.
Fundstrat’s Tom Lee tweeted about the correlation with Bitcoin, stating that the decoupling hasn’t happened and altcoins would follow the same pattern as they did during the last bull rally. He tweeted,
1/ Since 2015, one of the “pre-conditions” for the start of alt-season is a drop in the correlation between Alts and $BTC
This drop in correlation has started recently (lower part of chart and scale is inverted)
This is a data point to suggest alt-season could be underway… pic.twitter.com/g10Fjzx50q
— Thomas Lee (@fundstrat) April 20, 2019
He further added,
“past alt-seasons averaged 1,100% gains. Will the next alt-season be as strong as the past? Given there are probably only ~50mm active wallets (vs 5 billion Visa/MasterCard accts), we think crypto still early in the adoption curve. So it should be similar”
Assuming the pattern holds true and the bull run comes to pass, altcoins, including ETH, may undergo a similar wave led by Bitcoin.
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