How quickly are altcoins rising compared to Bitcoin? On the Discover Crypto podcast, analyst Kelly Kellam mentioned that he expects things to move up soon, though he’s unsure if it will be explosive growth.
Looking at the Bitcoin dominance chart, he pointed out a bearish divergence on the RSIs and a trend line that has broken down and flipped from support to resistance. This trend line now intersects with a multi-year resistance point, and the market is currently hovering right at this line.
Signs of an Impending Altcoin Rally
Analyst Kelly Kellam believes that a breakdown in Bitcoin dominance would be a strong signal that altcoins are expected to rally. He anticipates a broad market rally soon and suggests that when Bitcoin dominance falls, it will indicate that altcoins are starting to outpace Bitcoin. He believes we are on the verge of this happening.
Kellam added that the setup on the weekly chart shows a pattern that could take five to six weeks to reach the apex. If the market pushes into this apex and then rejects, a breakdown could occur before reaching the apex. Often, with these tightening patterns, the price action can break at any point after the 70% mark.
Using RSI on Weekly Charts for Altcoin Investment
On Crypto Banter’s The Sniper Trading show, the analyst emphasized the effectiveness of the normal relative strength index (RSI) on the weekly chart as a tool for buying altcoins. Historically, altcoins have shown optimal buying opportunities when their RSI drops below the 40% mark.
Thorchain Example: In 2021, Thorchain had buy zones around $3 when its RSI was low. This strategy led to a significant increase, with Thorchain reaching $15, marking a 45x return. Currently, Thorchain and other altcoins are once again approaching the 40% RSI zone, suggesting potential buying opportunities.
Render Case Study: The analyst also cited Render as a successful example where buying during the 40% RSI zone proved effective. Render was priced at $1.4 when it last entered this RSI zone and later surged to $12.
Dogecoin and Cardano Potential: Furthermore, the analyst noted that Dogecoin and Cardano are nearing similar RSI phases, indicating potential for significant price movements in the near future. Viewers were advised to evaluate various altcoins to identify those in a favorable “sweet spot” for buying based on their RSI levels.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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