As Bitcoin struggles to find support, THETA and THETA Fuel have rallied more than 1000%, leading investors to wonder if other altcoins will follow.
As the halving hype has now passed for Bitcoin (BTC), altcoins are beginning to regain traction. In that regard, many altcoins have been showing significant movements in the past two weeks.
One of the biggest gainers is Theta Token (THETA), which gained 1,000% since the crash on Black Thursday, March 12. The second token of the Theta platform is called Theta Fuel (TFUEL) has also surged more than 1,150% in a matter of one week.
Crypto market daily performance. Source: Coin360
Theta Token reaches new highs, but is it time to buy?
As the candles are getting greener and greener, people are getting triggered by FOMO, hype, and emotional bias towards entering these strong altcoin rallies.
Where did we see that before? During the pre-halving rally, traders and investors were eager to step into the markets at $10,000. However, the same traders and investors have a hard time stepping in when a coin retraces.
In that regard, the next chart shows the massive surge of THETA in recent months.
THETA/USD 2-day chart. Source: TradingView
THETA made an 80% crash in March, after which the lows were tested and confirmed for support, again.
Since that crash, several support/resistance flips were done and confirmed the upwards continuation. One of them is found at $0.068 and the second one at $0.125.
However, the altcoin started to accelerate and speed up significantly in recent days, as the momentum and hype increased heavily. Today, Binance announced that the exchange will support the token’s mainnet upgrade. This raises the question of whether this is another buy the rumor, sell the news event?
What should be stated? After such a peak rally, a correction and retracement are heavily needed. The left part of the chart is showing a similar surge, after which the price dropped down for support tests.
Therefore, it isn’t very reasonable to start entering coins in these zones with such an overextended price move.
The grey zones are pointed out as levels to watch, which are the $0.155-0.165 and $0.237 area. The primary zone to watch would be the support/resistance flip around $0.165.
The THETA/BTC tests the range high
THETA/BTC 2-day chart. Source: TradingView
The THETA/BTC is showing a massive chart. The range support at 0.00001000 sats held, after which the price surged towards the range high.
This range high has been tested a few times previously, as the chart is showing.
Does that mean that this coin is a great entry point? No, it’s hazardous to enter at the moment, especially given the great example earlier. A similar structure was developed last year.
The primary point of interest would be a retracement towards 0.00002000-0.00002050 sats. However, such a retrace could take a while to occur.
Theta Fuel manages to rally more than 1,100% in just a week
TFUEL/BTC 1-day chart. Source: TradingView
The second token on the Theta platform is called Theta Fuel (TFUEL) and it started to rally significantly in the past week, alongside with the main token.
A similar parabolic and extreme surge occurred on this token in which the price resistance at 0.00000270-0.00000280 sats got tapped.
However, when traders look at this chart, they should be aware of the risks involved in taking entries on this token. As just discussed, massive movements like this require time to consolidate and correct from that move. These movements are usually fueled with an enormous amount of hype and FOMO.
With today’s announcement of the mainnet upgrade this could mean that the price has reached the top of the move.
The chart is showing potential entry zones for traders to seek for. If the price holds the 0.00000155-0.00000160 sats level as support, a likely new rally could occur towards the range high, which is 0.00000240-0.00000280 sats.
However, once the support level at 0.00000155 sats is lost, a further decline is expected, which would slow down the hype.
The moment that the hype drains away is when people should get interested. The grey zone between 0.00000070-0.00000100 sats is an essential level for potential support.
Will the rally extend to other altcoins?
It’s highly likely to see a continuation occur on altcoins in the coming period. Multiple arguments are lining up for that statement. One of them is the sequence of flipping above the 100-day and 200-day MA on many of these altcoins.
Another argument is the decreasing volatility of Bitcoin (BTC) as the top ranked cryptocurrency on CoinMarketCap is hovering inside a range and unlikely to break out of that range soon.
Due to the Bitcoin halving, investor sentiment has increased heavily on the market in general, which suits the incredible amount of upgrades and updates on altcoins. This trend is expected to continue in the coming period as well.
BTC/USDT 4-hour chart. Source: TradingView
What can we expect from the price of Bitcoin? The chart clearly shows a range-bound structure in which the price couldn’t break above the resistance area at $9,800-10,100.
Since then, Bitcoin rejected the $9,300 level and started to continue dropping down, while the price is currently approaching the support areas and the range low.
The area to watch is the $8,400-8,600 area for support. As long as $8,400-8,600 remains support, a bounce to the upside is likely to occur. In that regard, the price will sustain and remain inside the range structure.
As long as Bitcoin remains inside this range structure and has a decreased volatility, the markets are ideal for altcoins to continue moving.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
