Bitcoin is the best performing asset this year because it has increased 30% annual profit (YTD). Meanwhile, gold (safe assets) also had a great growth at 14% YTD and the US Dollar Index (DXY) corrected slightly up at 3.8% YTD compared to Other major currencies in the world. Besides Bitcoin, some altcoins also have outstanding performance.
Regarding the stock market, S&P 500 (SPX) is still being submerged at -5.86% YTD while WTI Crude Oil is the worst performing asset, down -38% YTD this year. Only Nasdaq (NDX) was able to make an all-time high (ATH) last week, but this was followed by a massive sell-off that caused severe damage, resulting in a drop in asset value of around 4.8. % compared to nearest ATH.
The momentum for a solid stock market rally and recovery was suddenly interrupted when horrific news about the second wave of COVID-19 broke out in Beijing, China. Investors are suddenly eager to be brought back to reality when the world economy is still shaking when a pandemic is raging.
Bitcoin, despite claiming to be an alternative asset, could not shake off its close relationship with traditional markets and plummeted after a failed attempt to reclaim $ 10K for a fourth time. Now that the mainstream cryptocurrency has moved below the uptrend support trend line, the momentum has shifted from rising to sideways. The nearest support remains at $ 8,840, which is also coinciding with the bottom of the Bollinger Bands. To escape the sideways trend, Bitcoin needs a greater push to sustain a clear breakthrough.
Although Bitcoin loses momentum and falls into the boring sideways pattern, the opportunity lies in some alternative coins, also known as Altcoins. A number of high-capitalized and well-developed altcoins have recently outperformed both the traditional market and Bitcoin itself. Diversifying your portfolio into a select few Altcoin projects can help investors counter the general trend of the market.
The best altcoins in 2020
Crypto.com (CRO) is really the dark horse of 2020. This token has recovered strongly since the mid-March crash and started the journey up 360% from the latest annual low.
CRO has maintained its momentum above the 9-day and 15-day exponential moving average (EMA). As long as the token remains above these two moving averages, the upside is likely to continue. Fibonacci support level at 0.092 USD. If CRO successfully surpasses the previous local high of $ 0.12, its price could skyrocket.
Tezos (XTZ) is performing very well with a return of 112% YTD. At this point, the price has corrected back to the bottom of the Bollinger Bands and the 0.5 Fibonacci level at $ 2.46 currently provides good entry points.
The target for the price increase will be at the previous ATH in March at $ 3.95, while the short-term resistance seems to be $ 3, surpassing this level will bring new potential for price increases.
MakerDAO (MKR) is catching up to the decentralized financial trend, although MKR has faced strong selling pressure since the beginning of June, but it has still gained 218% since Dark Thursday.
The price is currently at the $ 509 Fibonacci retracement level, providing a good buying opportunity. For medium-term price target, we can look for profit taking opportunities when retesting ATH at $ 728.
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Learn more: What is Blockchain? Applications, challenge and types of Blockchains?
