After several false starts, the world’s largest cryptocurrency finally got it done.
With some solid momentum right out the gate, my only question is…
How far will it run?
And I think it’s bigger than BTC this time around. I’m looking for the altcoins to finally buy in and kick off a broad crypto bull market.
If you look beyond the blue-chip alts, most of these tokens have been going through accumulation for years— carving out massive rounding bottoms.
I’m looking for these patterns to morph into fresh uptrends… one after the next. And soon.
What I’m really saying is get ready for an altcoin summer.
And here’s the main reason why.
The squeeze indicator in the lower pane shows that volatility is absolutely depressed in BTC, and has been for a while.
Normally, this would tell us a big move is brewing.
But Bitcoin is breaking out as we speak, so a big move is literally happening now.
The crossover system on the indicator gives a reliable signal for when a new expansion or contraction phase is underway.
It just flashed, suggesting this resolution could see major follow-through, similar to the election rally last year.
However, I’m less excited about BTC and more excited about its crypto peers. They are all sporting these volatility squeeze setups to varying degrees.
Here’s Ripple $XRP, which is the most extreme example out there.
After a historic momentum surge in Q4 of last year, Ripple settled into a consolidation pattern and has been digesting those gains constructively for the last six months.
Now this is an altcoin. Volatility doesn’t remain this tight for long. This contraction formation has already coiled for an extended period, making it a rare setup.
And what it really means is we should expect fireworks.
So, I don’t think the move will fizzle this weekend. I don’t think it ends next week. Or next month.
Of course, there will be some backing and filling and dips to buy along the way.
But these cryptos are just starting to go now… after doing nothing all year. And the early momentum is saying these breakouts are valid.
Due to the nature of the consolidations— the way volatility was squeezed so tight for so long— the reaction rallies could be epic.
Volatility contraction is like fuel. Think of these consolidations like putting gas in the tank for the next move. The longer they coil, the more energy they build.
I don’t know how high Ripple goes this time, but I haven’t seen compression like this in a while.
The altcoin was up about 450% in a month’s time following the election last year. So I think it would behoove you to think big with this one.
The setup is there. The breakout is on.
Happy altcoin summer.
Do you own enough crypto exposure?
One way I like to add juice without depleting too much capital is via options. And god bless America, because these options really do give us options!
We now have a highly liquid options market for spot Ethereum ETFs like ETHA.
I initially bought ETHA calls in early June… and we doubled down last week because the setup was just that good.
We sold a double today, but I think the move is just getting started.
