Ethereum takes a breather to develop the next support level
It is clear that this bull cycle is not yet complete.
Once this final bearish wave on bitcoin plays out we will see the return of alt coins and the greatest alt season yet.
In this idea we look to eth/btc for evidence as to why we can expect further upside from alt coins in the future.
Although I do not look at this every day, the eth/btc chart is a beautiful lesson in next-stage logarithmic growth in the crypto space.
Bitcoin will always have the first mover status. It was the blockchain that has been mainly responsible for the seven network effects that over time have led to it achieving global adoption, and thus will most likely retain its status as the 'master' coin in this space with the largest market cap for many years to come.
But there is a thing called the logarithmic resistance curve, which flattens out the top-end price of an asset over time. Therefore each bull run which takes it from the bottom to the top of the curve will be subject to diminishing returns over time. It is becoming more and more apparent that bitcoin is subject to this law of diminishing returns.
The creation of ethereum and subsequently dozens, then hundreds, and now thousands of alt coins is a perfect causal representation of how limited bitcoin's growth is becoming relative to its early days of tens of thousands of percentage gains. While fiat printing may be infinite over time, the re-distribution of whatever percentage of it currently in existence is not. There are now options, and if one option is chosen it will be at the expense of having not chosen the other.
What does this mean for crypto? Well, for one, bitcoin is not in any danger. It isn't going anywhere anytime soon. A tightening logarithmic curve may make it more stable over time, which could increase the length of subsequent bull runs and provide many alt seasons during each one. I can't help but wonder however if there also lies a darker possibility of price forming a bell-curve over time and beginning a downward trajectory. There are so many factors to think about here that we can't just take an eternal growth on bitcoin stance for granted. That being said with the long-term curvature upward such a scenario would take decades to play out, and would begin with a bull run which creates a lower high which can be measured out beyond the extent of an entire halvening cycle.
Anyway back to the here and now. The expansion of the space is creating greater opportunities to make money than ever before, than even in the early days of being lucky enough to find and become a bitcoin investor. An increasing share of traders and investors are beginning to look elsewhere, to seek coins with a greater ROI than bitcoin can offer at its already mature stage. And there are many of them. Bear markets contract price on all coins and raise bitcoin dominance again. However, the downtrend in btc dominance is already as obvious as the uptrend on a chart like eth/btc. We will most likely continue to see lower highs and lower lows over time in bitcoin dominance on the macro scale.
Alt coins are much more extremely affected by crypto market cap contraction, which basically means that "If you HODL your crypto, you're gonna have a bad time". That being said, jumping in at the very bottom of a contraction point and riding it all the way up to the top of the next expansion point will net you absolutely INSANE profits, if done correctly. The reason may be that a lot of these coins are subject to the same logarithmic growth curve over time as bitcoin. Many in fact have already developed a cult-like following whose investors will continue to pour money into their chosen blockchain during each and every growth cycle. So when people say that 99% of these coins are going to zero, I beg to differ with them. They may lose a vast majority of their value in each bear market but an increasing share of them are developing a resilience much like bitcoin has shown over time. Ethereum for now is the greatest example of this, and therefore is a leading indicator of which direction all of the other coins are headed and where the most likely reversal points are on all of your favorite coins.
After HODLing through the 2018 bear market and losing 95% of my money, I've made it my goal to learn how to analyze the market in order to time the MACRO movements in crypto to the greatest degree of accuracy possible.
You can time the market using a variety of tools, including this graph.
And what this graph says is that we are merely taking a breather before the next, even bigger spike in alt coin activity.
The greatest thing I've ever heard said about bitcoin and crypto as a whole is this:
"...it is a case of software eating money".
That really drives home the meaning of what this is and what it is actually capable of in the long run, doesn't it?
Once this final bearish wave on bitcoin plays out we will see the return of alt coins and the greatest alt season yet.
In this idea we look to eth/btc for evidence as to why we can expect further upside from alt coins in the future.
Although I do not look at this every day, the eth/btc chart is a beautiful lesson in next-stage logarithmic growth in the crypto space.
Bitcoin will always have the first mover status. It was the blockchain that has been mainly responsible for the seven network effects that over time have led to it achieving global adoption, and thus will most likely retain its status as the 'master' coin in this space with the largest market cap for many years to come.
But there is a thing called the logarithmic resistance curve, which flattens out the top-end price of an asset over time. Therefore each bull run which takes it from the bottom to the top of the curve will be subject to diminishing returns over time. It is becoming more and more apparent that bitcoin is subject to this law of diminishing returns.
The creation of ethereum and subsequently dozens, then hundreds, and now thousands of alt coins is a perfect causal representation of how limited bitcoin's growth is becoming relative to its early days of tens of thousands of percentage gains. While fiat printing may be infinite over time, the re-distribution of whatever percentage of it currently in existence is not. There are now options, and if one option is chosen it will be at the expense of having not chosen the other.
What does this mean for crypto? Well, for one, bitcoin is not in any danger. It isn't going anywhere anytime soon. A tightening logarithmic curve may make it more stable over time, which could increase the length of subsequent bull runs and provide many alt seasons during each one. I can't help but wonder however if there also lies a darker possibility of price forming a bell-curve over time and beginning a downward trajectory. There are so many factors to think about here that we can't just take an eternal growth on bitcoin stance for granted. That being said with the long-term curvature upward such a scenario would take decades to play out, and would begin with a bull run which creates a lower high which can be measured out beyond the extent of an entire halvening cycle.
Anyway back to the here and now. The expansion of the space is creating greater opportunities to make money than ever before, than even in the early days of being lucky enough to find and become a bitcoin investor. An increasing share of traders and investors are beginning to look elsewhere, to seek coins with a greater ROI than bitcoin can offer at its already mature stage. And there are many of them. Bear markets contract price on all coins and raise bitcoin dominance again. However, the downtrend in btc dominance is already as obvious as the uptrend on a chart like eth/btc. We will most likely continue to see lower highs and lower lows over time in bitcoin dominance on the macro scale.
Alt coins are much more extremely affected by crypto market cap contraction, which basically means that "If you HODL your crypto, you're gonna have a bad time". That being said, jumping in at the very bottom of a contraction point and riding it all the way up to the top of the next expansion point will net you absolutely INSANE profits, if done correctly. The reason may be that a lot of these coins are subject to the same logarithmic growth curve over time as bitcoin. Many in fact have already developed a cult-like following whose investors will continue to pour money into their chosen blockchain during each and every growth cycle. So when people say that 99% of these coins are going to zero, I beg to differ with them. They may lose a vast majority of their value in each bear market but an increasing share of them are developing a resilience much like bitcoin has shown over time. Ethereum for now is the greatest example of this, and therefore is a leading indicator of which direction all of the other coins are headed and where the most likely reversal points are on all of your favorite coins.
After HODLing through the 2018 bear market and losing 95% of my money, I've made it my goal to learn how to analyze the market in order to time the MACRO movements in crypto to the greatest degree of accuracy possible.
You can time the market using a variety of tools, including this graph.
And what this graph says is that we are merely taking a breather before the next, even bigger spike in alt coin activity.
The greatest thing I've ever heard said about bitcoin and crypto as a whole is this:
"...it is a case of software eating money".
That really drives home the meaning of what this is and what it is actually capable of in the long run, doesn't it?