The bitcoin price has surged to $9,200 plus over the past 24 hours by recording an increase of around $400. It successfully maintained its momentum in the $9,000 region, which investors perceive as an important level that could lead the bitcoin price to enter the $10,000 in the short-term.
Alternative Cryptocurrencies Steal the Show
Alternative cryptocurrencies, also known as altcoins, a term that is generally used to describe cryptocurrencies outside of the major currencies like bitcoin and Ethereum, have continuously outperformed bitcoin and other large cryptocurrencies in the market over the past few weeks.
Today, on April 24, some of the best performing altcoins include ICON (ICX), Ethos (BQX), EOS, and Kyber Network (KNC). All of these ERC20 tokens have recorded more than 10 percent gains against bitcoin which also recorded a solid gain of its own at around 3 percent.
ICON’s daily trading volume has reached 15,500 BTC, with around 50 percent of that coming from the world’s largest cryptocurrency exchange Binance and the other 50 percent from South Korean cryptocurrency trading platforms Bithumb and Upbit.
Against the US dollar, ICON has demonstrated an increase of 16 percent, rising to $1.5 billion in market valuation and $145 million in daily trading volume. Traders are attributing the surge in the price of ICX over the past two weeks to the upcoming launch of its main platform on April 30.
Even with today’s 16 percent surge against the US dollar, technical indicators demonstrate a decent buy signal for ICX, with both exponential and simple moving averages showing a positive short-term trend for ICX. But, with the Relative Strength Index (RSI) at 72 and Williams’ Percent Range at -9, ICX is currently overbought and subsequent to the current strong rally, ICX could suffer a minor drop.
Tokens in general have demonstrated strong performances throughout April and as the market continues to recover with bitcoin’s lead, it is likely that Ethereum-based ERC20 tokens, which had shown major corrections from January to March, will record large gains in the short-term.
Investors have started to spot a trend in the market in the past two weeks; when the bitcoin price surges, altcoins and tokens tend to surge by bigger margins and when the bitcoin price falls, altcoins drop by larger percentages.
Although the market has added almost $200 billion since early April, the cryptocurrency market is still going through a mid-term recovery and in terms of extreme volatility and uncertainty, dominant cryptocurrencies such as bitcoin and Ethereum lead the market.
Still, altcoins and tokens are generally following the price trend of bitcoin and a bullish development in the bitcoin price will likely result in large gains for altcoin investors.
Pantera Capital CEO Dan Morehead stated that bitcoin crossed a key level earlier this month and that the value of the dominant cryptocurrency could surge throughout April and May as a result.
“Bitcoin has been growing at 165 percent a year for the six years that we have been in business. And something that is growing that fast hardly ever gets down below its 200-day moving average. When it does it is a very good time to buy. It did five years ago when we launched our first fund and it just crossed that earlier in April,” said Morehead.
Featured image from Shutterstock.
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Author: Joseph Young
Hong Kong-Based Finance and Cryptocurrency Analyst / Writer. Contributing regularly to CCN and Hacked. Offering cryptocurrency news and Insights Into Asian Market (South Korea, Japan, and more).
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