We see both the possibility and need for some coins below Bitcoin (BTC) on the market cap chart to get moving on the upside.
Ethereum (ETH) on BitMEX is at a key horizontal resistance point near $175 (Figure 1). Ethereum (ETH) has to get moving.
The use case for Ethereum (ETH) is there, but Mr. Market needs to validate it — particularly with Consensys trying to raise $200 million.
Polymath (POLY) is also on the “running out of patience” list. POLY is back at its lows and seems deeply oversold (Figure 2). It’s ready to move up given a solid catalyst. Polymath is having an open house allowing for an open dialogue directly with executives. For the sake of the coin, the open house needs to be the positive catalyst.
Binance coin (BNB) may be on the move and is now above a key Gann line Figure 3). If BNBBTC can build momentum on the upside, much higher prices are possible.
Bottom Line: Alts and big coins are critical to the validity of the crypto ecosystem. We see the possibility of a transition from alt season (aka the crypto casino) to “alt reason” where smaller coins move higher on legitimate catalysts. If this transpires, we can see it triggering another launch higher in crypto and a move in Bitcoin (BTC) to our Gann target of $6,200.
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