Crypto strategist Nicholas Merten is naming seven altcoins that he believes are in a good position to surge in a new bull market cycle.
On the latest episode of DataDash, the crypto analyst examines when the altcoin market may begin to turn around.
“What it looks like [Bitcoin is] doing is possibly coming up here to around $11,000, breaking out of this very long-term wedge, breaking out above resistance, and making it support for the next coming months. If [Bitcoin] can do this and start to trigger the next cycle, this is actually very good news for altcoins.
Now, why is that? It’s because we need an increase of liquidity and valuation in Bitcoin markets in order to usually see that kind of benefit go onward to altcoin markets.”
If and when a new altcoin season begins, Merten says that Ethereum (ETH) is preparing for fireworks before the end of 2020.
“What we want to look for is an eventual breakout above this wedge and a continuation of higher lows and higher highs. It looks like we’re formulating for that sometime around in the fall to the winter of 2020, lining up pretty close to our general estimations from what we can tell about altcoin dominance as well as Bitcoin.”
Another altcoin that Merten is interested in is Litecoin (LTC). While the analyst expects the crypto to continue its bearish trend against Bitcoin in the short term, he sees a strong recovery on the horizon.
“Litecoin has been coming down quite dramatically over the last few weeks compared to Bitcoin. If we see it visit this general range that we saw back in 2017, and we get a strong rebound afterward, this will likely be a sign that we’ve entered into the altcoin cycle.”
Merten is also a fan of ChainLink (LINK). Instead of sharing his technical insights on LINK, Merten explains the use case of the coin which has surged 121% compared to Bitcoin’s 35% in 2020.
“Smart contracts on the Ethereum blockchains can be very useful. However, they’re not very useful if they can’t communicate with the outside world, and that’s a limitation that the Ethereum network has because everything on Ethereum’s chain can only be really communicated within Ethereum.
We need something that can help bridge that gap between the outside world with all traditional enterprise array systems and actually be able to connect that to smart contracts on the Etherium blockchain as well as other protocols. I think that ChainLink is not only going to serve, obviously, Ethereum but it also serves Hyperledger and Bitcoin.”
Merten also sees the fundamental value of other altcoins including Kyber Network (KNC), Unibright (UBT), Ren (REN) and Compound (COMP).