Is The Crypto Bull Run 2.0 Here? What the Monthly Charts Tell Us
The crypto market has come a long way since the misery of mid-July. And it seems the old investment adage of “sell in May and go away” has played out to a T. Are we now in the second leg of the crypto bull run?
According to a few monthly charts shown in this article, we certainly are.
Total Crypto Market Cap Monthly Chart:
Altcoin market cap monthly chart. Taken on 02 September 2021.
The above chart shows the total market capitalisation of the crypto market. Since this excludes bitcoin, the chart is a proxy for the overall altcoin market.
Two things are very bullish about this chart. And it shows that the summer “pullback” is now behind us.
First, the altcoin market finished the month of August at an all-time high monthly closing price. As of the end of August, the altcoin market cap stood at just under $1.2 trillion.
This was over $100 billion higher than the altcoin market cap at the end of April.
The highest altcoin market cap ever recorded was just under $1.5 trillion, on 12 May. However, on a monthly closing basis, the altcoin market is now in an uptrend once more.
The second bullish thing about this chart is the fact that the altcoin market closed the month above the top Bollinger Band. This means two things:
- The monthly chart is in “trending mode”
- Volatility is expanding while the price is going up
Bear in mind this is a monthly chart. So while this does suggest a potential bull market for the next few months, there can be major short term corrections along the way!
Of course, not all altcoins closed the month on higher highs. But Ethereum and Cardano (the 2nd and 3rd largest digital assets) have done:
Ethereum monthly chart. Taken 02 September 2021.
Cardano monthly chart. Taken on 02 September 2021.
Bitcoin monthly chart:
It’s all well and good for altcoin charts to look bullish. But as history has shown us many times, if bitcoin trips, the whole market falls.
The bitcoin monthly chart does not look as strong as the charts we have seen above. This is because bitcoin has not yet made a higher monthly high, nor did it close the last monthly candle above the top Bollinger Band.
With that said, bitcoin has closed two green monthly candles in a row, which is not something we saw in the 2018 crypto bear market.
Bitcoin monthly chart. Taken 02 September 2021.
Conclusion:
It’s easy to overcomplicate things when investing. But the above charts do suggest we are in the midst of a second crypto bull run. Of course, nothing is guaranteed and anything can happen!
But until proven otherwise, the altcoin market is still in a monthly uptrend. Hopefully, bitcoin catches up soon.
The usual disclaimer: This is not investment advice. It is just for information and education.
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