- Mark Newton is a 25-year Wall Street veteran and Global Head of Technology Strategy for Fundstrat.
- Newton shares five popular altcoins that are close to the 52-week high or high and close to the breakout.
- He also explains why the fourth quarter is most likely to be “very positive” against Bitcoin.
Bitcoin has taken a break last week after hitting a record high with the launch of the first futures-based Bitcoin ETF.
The slight price cut is related to a popular strategy in the cryptocurrency Bull Run that rotates capital to Altcoin in the hope that traders who have invested in Bitcoin will profit and turbocharge their profits. There may be.
“We’ve definitely seen at least some buying power turning to some altcoin,” Armando Aguilar, a digital asset strategist at Fundstrat Global Advisors, said in an interview.
The problem is that there are over 9,000 altcoins today and more altcoins are being minted every day. According to Wall Street 25-year technical analysis veteran Mark Newton, in order to sift wheat from rice husks, investors are both the basic factors and technical trading indicators of these rapidly evolving crypto assets. Need to be analyzed.
“I think technical analysis is very important in cryptocurrencies because there aren’t many fundamentals to know exactly when prices will go up and down,” he recently joined Fundstrat as Global Head of Technical Strategy. Newton told the insider. In an interview.
Bullish factors such as increased institutional ownership and the adoption of cryptocurrencies can exist in the market for weeks or months, but prices do not necessarily fluctuate, he observes. did.
“So I often see a combination of technical and good fundamentals, and it really benefits each other,” he said.
Five popular altcoins close to your breakout
Technical analysis is basically a survey of price movements, volumes, sentiments, and transaction flows to identify and predict price trends.
“When we see prices above certain levels and shorts covered, we see people try to buy technical breakouts and then the volume grows,” Newton said. “Therefore, the technical helps to remove the blindfold and allow us to see how price behavior and things work. These patterns tend to repeat over time.”
Looking at the crypto market, Newton noticed the following popular altcoins: Ethereum (ETH), Solana (Sol), Polka dot (Dot), Tezos (XTZ), and Binance coin (BNB) are at or near the 52-week high and appear to be close to their own breakout.
“They are attractive to me, based on their technical composition,” he said. “Usually, what is starting to exert power is what continues to exert power.”
Ethereum, which was trading at $ 4,233 as of Monday afternoon, has been at $ 603,452 or about $ 2 billion since London’s hard fork (a network upgrade aimed at facilitating the transition from Proof of Work to Proof of Stake). Burned Ethereum worth dollars.
In a research note on October 20, Newton wrote that the Ethereum price target above $ 4,027 should not face much resistance at $ 4,410. In addition, it probably goes beyond this level and recovers to a target of close to $ 4,951 with additional technical forecasts up to $ 5,826. His technical analysis can be seen in the chart below.
Polkadot, which was trading at $ 44 as of Monday afternoon, “has begun to show its true potential in the last few weeks after surpassing the September 2021 highs,” Newton said.
“This puts Altcoin right next to the highest ever in May,” he writes. “This week’s recent integration isn’t technically bearish, it just means a minor integration.”
Created in 2016 by Ethereum co-founder Gavin Wood, Polkadot made major developments in November and recently announced that parachains will link to external blockchains such as Bitcoin and Ethereum.
At the beginning of October, polkadot experienced a pullback and fell below $ 30, but Newton said the fix was “short-lived, first close to $ 38 and then need to find support close to $ 36.50. I’m thinking. This represents the area to buy the decline. ” Meanwhile, Altcoin is likely to challenge the $ 49- $ 50.75 price level in the coming days or weeks, given “structural improvements and bullish momentum,” he added.
He also emphasized Solana as an “attractive to own” altcoin, given the integration after making a 900% profit from July to September.
“Despite last month’s flat trading, this agitation is very good for buying SOL / USD, given that prices have successfully held up in the top quartiles of that range,” Newton said. It is considered to represent risk / reward. ”
Tokens that were trading for less than $ 200 by October 21 have risen to $ 213 as of Monday afternoon.
Decentralized blockchain is one of the fastest and lowest cost Layer 1 protocols with decentralized finance, non-substitutable tokens, and over 400 projects across Web3. The network claims to process over 50,000 transactions per second. According to data provider Defi Llama, the total locked value of all assets deposited in Solana’s DeFi protocol also reached a record $ 13.84 billion as of Monday afternoon.
Newton said Solana’s breakout above $ 167.47 should lead to at least $ 235, with an additional target of $ 308.54.
Bitcoin’s “Very Positive” Q4
Newton said he has an upward bias Bitcoin (BTC) From now to late November or early December.
The largest cryptocurrency, which was trading at $ 63,326 as of Monday afternoon, has increased by eight of the 11 fourth quarters since it opened in 2010.
“Anything can happen, but the current trend is still very positive for Bitcoin,” he said. “Seasonally, it’s a very positive time for Bitcoin.”
Based on previous pricing activity, Newton has set a price target for Bitcoin at $ 72,500 and then $ 89,000. This would be “a 100% extension of the rise from the March lows last year.”
Still, there are still signs of bearishness. Bitcoin’s daily relative strength index is overbought. This indicates that the token may be heading for a trend reversal or price pullback. However, Newton believes that Bitcoin’s seasonal strength and technical setup will become widespread in the near future.
“In conclusion, it is correct to support the additional profits, even though the daily RSI has reached the highest overbought level of the year,” he wrote.