Market Signal That Preceded a 400% Altcoin Rally in 2020 Currently Flashing Bullish, Say Glassnode Co-Founders
A key indicator that predated a 400% altcoin rally is once again flashing bullish, according to the co-founders of market intelligence firm Glassnode.
In a new thread, Glassnode co-founders Jan Happel and Yann Allemann – who go by the handle Negentropic – tell their 63,300 followers on the social media platform X that investors are shifting their funds over to riskier assets.
Happel and Allemann came to this conclusion after the Nasdaq declined by 2% while the iShares Russell 2000 ETF (IWM) rose 3% – a similar move that preceded 2020’s 400% altcoin rally.
“Rotation coming? Yesterday, we saw how Nasdaq declined >2% while IWM rallied >3%. This is a clear indication of Rotation. The move to riskier assets. Will we also see this in Bitcoin and alts? Well, in November 2020, we had a day just like yesterday. IWM soared and continued up for the coming months.
This was the starting signal to the strongest part of the alt-rally for the coming four months as TOTAL3 (crypto market excluding BTC and ETH) rallied by ~400% in just 4 months. Will we see the same again? Will rotation create a massive rally in Alts? We think that may well happen!”
TOTAL3 is currently sitting at 575.8 billion, according to TradingView.
Moving on to the crypto king, Negentropic says that Bitcoin (BTC) has key resistance levels ahead and if it were to succeed, it could see its price rise to between $65,000 and $70,000.
“[We] highlighted the need for BTC to consolidate before moving higher. Key resistance levels: $58,300 and $60,000. BTC price is warming up, testing the immediate resistance at $58,523!
Since June 16th, we reached the highest risk levels (dark red line), as shown in the chart which was detected before the correction happened. Medium-term focus: $65,000 and $70,000.”
Bitcoin is trading for $59,139 at time of writing, a fractional decrease during the last 24 hours.
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