Closer to Being Bullish

The so-called Crypto Winter has been long and exhausting for a lot of us who have participated in it. Even those that enjoyed the run higher in 2017 can most certainly say that it has been a tough ride downward. Despite the multiple attempts to reverse the trend, seems that bitcoin can never get a handle of itself to move the markets forward. And as we all know bitcoin leads the market and everyone follows. However, we have started to see some differences in this latest uptrend that we have seen in 2019.

I have been looking for indicators other than price to help monitor the markets and any type of reversal we may see. As of late, a number of these indicators that I look at have been trending towards more positive developments. The first, I’m probably the one I’m most excited about, is the fact that bitcoin dominance is on the verge of falling below 50%. I would have to go back to August 2018 to see the last time that dominance of bitcoin was below that 50% mark. Interestingly, the market cap of all cryptocurrency assets was over $220 billion at the same time.

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I think this could mean number of things. First, it couldn’t be that bitcoin prices have started to stabilize and create a base for which they can build upon. Next, it could also mean that many of the altcoins are poised for some improved pricing as many have reached lows not reached by bitcoin. We know of many even in the top 50 that are down over 90%. We have started to see some examples of these like EOS and Litecoin which have rallied strong from their bottoms this year; achieving increases of over 100% in some cases!

Another piece of information that we can see by these numbers is the fact that new coins or tokens are hitting the market and generating demand. For example, Cosmos or ATOM is a relatively new coin that has hit the market in recent weeks and has perform fairly well. In fact, it is currently in the top 25 crypto‘s with the market cap about $1 billion! This could be an indication of investor interest in projects that are delivering on the roadmaps as well as some speculation that the worst is now over. It will be interesting to follow how the top 50 cryptocurrencies perform in the coming weeks as well as the placement of many of these newcomers as well as those who have been around for a while.

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Another indicator that I like to review is the state of Stablecoins is in and their placement in the Top 50 in market caps. These assets once had over $3 billion parked in them but have recently started to see declines in assets. Tether continues to be the leader with approximately $2 billion in the market cap but the overall amount has come down slightly in the last couple of months. However, Tether is close to being outside of the top 10 cryptos as other projects have found a place in the top 10. They also continue to see heavy volumes as they continue to be preferred for trading pairs.

This leads me to the last indicator I have been watching which looks promising which is volume itself. Volumes have consistently been around $40 billion on a daily basis for a couple of weeks now. The top five crypto have been seen over $1 billion in volume on a daily basis as well which is it indicator of the amount of transactions and potential he the man they are having markets. Even crypto that are outside the top 10 have some pick ups and volume sometimes equaling 5 to 10% of the market cap in a single day which is pretty impressive considering the often lack of liquidity that is present on some of these exchanges.

While I think we are still somewhat in a bear market, I see these trends and indicators pointing to a more positive future even if it only be a period of stabilization. Stable prices is also good for the developers to be able to track revenues and costs when building their project. A period of stability could add more users in adoption which at the end of the day will be what drives demand and prices in the long term. I feel that it is time to get our wallets ready and position ourselves for a better future in these markets.

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