When RiskHedge chief analyst Stephen McBride told me he was putting on our first-ever Crypto Summit tomorrow at 2 pm ET, my first thought was…
The timing could not be more perfect.
As I’ll show you today, the charts tell me the entire crypto market is sitting on the launchpad.
The crypto space hasn’t looked this primed to surge in a long, long time.
If you’re new to RiskHedge, I’m a professional trader. I use price, volume, and other “charting” indicators to identify assets before they take off.
Today, let’s look at the crypto market from a trader’s perspective. As you’ll see, we’re about to enter one of the most exciting times to be a crypto investor.
Let’s start by looking at bitcoin…
Bitcoin is the world’s largest cryptocurrency.
It’s worth more than $1.1 trillion.
Due to its sheer size, bitcoin sets the tone for the overall crypto market.
When it rises, it usually pulls the rest of the market higher. When it falls, the opposite happens. Bitcoin drags other cryptos down.
And bitcoin has been strong lately. As you can see below, it’s more than doubled since bottoming out over the summer.
Not only that, it recently broke out to new all-time highs, which is bullish for the entire crypto market.
February 2021 was the last time bitcoin decisively broke out to a new high. It eclipsed $40k…then rallied 50% to over $60k in about two months.
In short, bitcoin should do very well in the coming months. But make no mistake.
“Altcoins” will deliver the biggest gains…
Altcoin is short for “alternative coin.” Any crypto except for bitcoin is considered an altcoin.
Some altcoins have delivered huge gains lately. Axie Infinity (AXS) has rallied 22,724% since the start of the year… Harmony (ONE) has soared 7,709% in 2021, and Terra (LUNA) has skyrocketed 6,514% over the same period.
The thing is… there are more than 13,000 altcoins.
Some will revolutionize the world and command trillion-dollar valuations.
Many others are complete jokes I wouldn’t invest a penny in.
Now, I can’t share all those charts with you. However, we can get a sense of the overall altcoin market health by looking at Ethereum (ETH), the second-largest cryptocurrency.
Specifically, we want to examine how Ethereum is performing relative to bitcoin. That’s what the chart below shows.
When this line is rising, Ethereum is outperforming bitcoin. When it’s falling, bitcoin is outperforming.
Ethereum spent nearly three years “carving a base” against bitcoin. It began climbing out of that base in recently.
Ethereum looks poised to outperform bitcoin in the coming months.
This is a great development for folks who own Ethereum. But it’s also bullish for the rest of the altcoin market.
You see, Ethereum usually leads the altcoin market. When it pulls ahead of bitcoin, it’s like giving the rest of the altcoin market the green light to rally.
And that’s not the only reason altcoins are poised to rocket higher…
This chart shows the performance of the Altcoin Index vs bitcoin.
You can see that altcoins were outperforming bitcoin at the beginning of the year… until bitcoin took the reins in May.
Now that altcoins have stabilized at a key level… they appear to be setting up for another big run.
Having said all this, many investors are skeptical about investing in altcoins. That’s mostly because many altcoin projects never live up to the hype. But please understand:
Crypto has come a long way in recent years…
Back in 2017, crypto projects would trade based purely on hype.
Today, it’s a totally different story. Crypto has truly gone mainstream.
More importantly, as Stephen has showed us over the last couple weeks, many of these crypto projects have real use in today’s world.
Take Uniswap, a $12 billion “stock market” for cryptos. It lets you buy cryptos you can’t easily buy anywhere else.
There are even crypto “banks” where anyone can lend, borrow, and earn interest on their crypto assets.
Stephen recently highlighted the crypto Helium, which sells hotspot routers you can install on your roof. You can then “sell” internet to nearby folks through this Helium router.
Then there’s Axie Infinity. This gaming project already has more than 1.8 million active users worldwide. It’s now worth more than video game giants Take-Two Interactive (TTWO), Zynga (ZNGA), and Ubisoft, as you can see below.
Axie’s already soared a whopping 22,724% this year.
Don’t get me wrong: There are lot of questionable crypto projects. And some downright bad ones.
But when you pinpoint the right altcoins, you stand to make a lot of money during this crypto boom.
If you’d like to discover more, sign up for Stephen’s Phase 2 Crypto Summit tomorrow at 2 pm ET.
More than 7,000 investors have already signed up.
During the Summit, Stephen will unveil his #1 “no brainer” altcoin to buy today.
He says he expects this will be the go-to crypto for big industries like sports betting, music streaming, and digital art. You’ll get the name just for attending tomorrow’s Summit.
It’s free to attend, but registration is required, so go here to get your name on the list.
Hope to see you there.
Chief Trader, RiskHedge