Bitcoin is this year’s best-performing asset as it has stacked 30% year-to-date (YTD) gains. Compared to gold, a safe-haven asset that has also had a great run at 14% YTD and the US Dollar Index (DXY) as a baseline which adjusted upwards slightly at 3.8% YTD compared to other major currencies in the world.
On the equities side, the S&P 500 (SPX) is still being submerged at -5.86% YTD while WTI Crude Oil is the worst-performing asset, down -38% YTD this year. Only Nasdaq (NDX) managed to successfully create an all-time-high (ATH) last week, but this was followed by a heavy sell-off, leaving the asset down approximately 4.8% from the latest ATH.
The bullish momentum and solid stock market recovery were suddenly interrupted when the news of the dreadful COVID-19 second wave broke out in Beijing, China. Investors lost in the euphoria were brought back to a reality where the world economy is still trembling as the pandemic rages on.
Bitcoin, despite claiming to be an alternative asset, cannot shake off its close ties with traditional markets and dropped sharply after the fourth failed attempt to reclaim $10K. Now that the bellwether cryptocurrency broke below the upward supporting trendline, the momentum has shifted from the upside to sideways. Closest support level remains at $8,840 which also coincides with the bottom of a Bollinger Band. In order to escape the sideways trend, Bitcoin requires a larger push momentum to be able to sustain a clear breakout.
Despite the main crypto player Bitcoin losing momentum and falling back into a boring sideways pattern, opportunities lie in some of the alternatives coins dubbed Altcoins. Some of the high-cap and well-developed Altcoins have been outperforming both the traditional market and Bitcoin itself recently. Diversifying into a few selected Altcoin projects could help investors hedge against the frailing overall market trend.
Top-performing Altcoins in 2020
Crypto.com (CRO) is truly the dark horse of 2020. The token has rebounded vigorously since the mid-march crash and began a journey of 360% gains since the latest yearly low.
CRO managed to maintain its momentum adobe 9 days and 15 days exponential moving average (EMA) lines. As long as the token stays afloat above these two moving averages, the bullish momentum is likely to continue. The Fibonacci support is at $0.092 while a successful attempt to break above the previous local high at $0.12 can send CRO prices skyrocketing.
Tezos (XTZ) is performing incredibly well with a 112% YTD return. At the moment, the price has corrected back down to the bottom of the Bollinger Band and the 0.5 Fibonacci level at $2.46 which are both currently providing good entry points.
The target for the upside would be at the previous ATH in March at $3.95, while the short term resistance seems to be at $3, breaking above this will provide a new upside potential.
MakerDAO (MKR) is catching on with the decentralized finance trend, even though MKR has faced a strong sell-side pressure since the beginning of June, it still poses 218% gains since the Black Thursday.
The price is currently staying at the Fibonacci Retracement level at $509 which provides a good buying opportunity. For the mid-term price target, we could look for the take-profit chance at the retest of ATH at $728.
Note: The top-performing Altcoins in this analysis are selected from the curated list of SCN30 Index.
Disclaimer: This analysis is the view of the author’s alone, and does not in any way represent trading advice. all traders should trade at their own risk.
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