Altcoins Boom! Let's Take a Closer Look!Altcoins gain 80% in value over just two weeks! Let’s take a closer look at the situation.
The Rally Begins
Over the past six months, Bitcoin has been doing incredibly well, continuously making higher highs and showing consistent growth. However, the same cannot be said for most altcoins. With a few exceptions, most altcoins did not move nearly as much and were mostly consolidating. However, beginning January 28th, the altcoin season began, with the Midcap Index growing by 80% in just two weeks. The Midcap Index consists of 23 mid-cap coins, so it’s safe to say that it accurately represents mid-cap coins.
Trend Direction: The MACD on the daily chart works well as a strategy for BTC. It appears that it also tends to work on the Midcap Index. If you had used it as a strategy since the index’s creation and took only long trades, you could have made a 184% return, which is not excellent considering that the buy and hold would yield 326%. Even when adding the 56% open P/L, you would still only have 230%. Therefore it is better used to identify the trend direction rather than to trade signals off it.
Who is Taking the Lead?
DeFi tokens have been some of the best-performing assets in this bull run. The DeFi index grew 300% in 2021 alone! Other coins related to DeFi, such as LINK and ETH, have also been doing well.
Apart from DeFi, exchange coins have been booming as well. BNB and FTT this year grew by 220% and 270% respectively. OKB also reached a new all-time high.
