It’s time to start getting excited about your cryptocurrency investments, especially if you hold Bitcoin (BTC). The top cryptocurrency by market cap (41.4% dominance of total market cap) has achieved a golden cross, seeing BTC’s 50-Day Moving Average (DMA) cross above the 200-DMA.
The last time Bitcoin changed from Bullish to Bearish was May 20th, 2020. You would have bought 1 BTC for less than $10,000 at this point, so this current macro trend change is building a lot of excitement and anticipation in the cryptocurrency community.
The charts below are daily charts of Bitcoin’s golden cross from May 2020 on the left, and this week’s cross on the right. You can see that the bullish cross in 2020 was the beginning of a very successful multi-month trend. A repeat of last year’s bullish activity could easily see BTC hit $100,000 by the end of 2021.
Aside from BTC, Ethereum saw a strong bounce from the $3,100 support level and has created a new trend with higher highs and higher lows as the coin continues to accumulate at new levels. Look for Ethereum to continue to respect its 50-DMA as a crucial local support level, with major upside potential if the $3,850 resistance and $4,000 arbitrary resistance levels are overcome.
The hottest trending altcoins right now are Layer-1 blockchain solutions, which can be most simply understood as parallel blockchains built to support larger blockchains like Ethereum by handling a portion of transaction verification.
Avalanche (AVAX) is the quickest growing Layer-1 for the Ethereum network, which has seen a 487% 60-day growth and has jumped to the #13 cryptocurrency by market cap.
If you are looking to diversify your cryptocurrency investments, Layer-1 projects are a great opportunity that will be essential in helping larger projects scale their operations over time.
Keep an eye out for our CryptoPulse Quant trading model in the coming weeks, which will allow you to follow the MarketGauge Risk-Managed Process for how we maximize profits in the cryptocurrency market!
Coins to Watch: Layer-1 Solutions: Avalanche (AVAX), Algorand (ALGO), Polkadot (DOT)
Today’s Winners: Ethereum (ETH) recovered above $3,500 as it pushes closer to the $4,000 resistance level.
Today’s Losers: Polkadot (DOT) achieved multi-month highs yesterday while the rest of the large-cap crypto market was down. DOT is down on the day but should resume moving with the overall market in the next week.