The unstoppable altcoin asset that has taken the cryptocurrency market by storm, Tezos, may have bull-penned both the XTZUSD and XTZBTC pairs, indicating that a strong breakout could be coming that could lead to that the asset is rebounding against both the dollar and Bitcoin.
Tezos Bull Pennant signals potential rally in the crypto market in the coming days
Tezos is one of the top performers of the year so far. The altcoin’s massive gains from both a strong rally and annual stake bonuses are proving extremely attractive to crypto investors, who have seen most of the decline in most other assets over the past two years.
The bear market caused cryptocurrency prices to drop 99% after breaking records at the height of the crypto hype bubble.
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But Tezos completely missed that boat, and the bright star’s standout altcoin was not tarnished by the negative sentiment or the throng of underwater investors just eager to break their fortunes after two long years.
Because of this, Tezos has seen exceptional hype and positive momentum, bringing the asset a return of over 200% before the coronavirus panic sell-off downsized the asset and almost every other financial asset.
However, since then, Tezos has rallied strongly, and a bull pennant in both the XTZUSD and XTZBTC pairs suggests a further spike.
XTZBTC chart pattern indicates potential altcoin season and bitcoin outperformance
Not only is Tezos signaling that it and possibly other cryptocurrencies are making the XTZUSD pair beat faster, it is also showing a bull pennant on the XTZBTC trading pair.
An increase in crypto assets in the USD trading pairs means that both Bitcoin and Altcoins are growing at the same time. However, the bullish momentum for altcoins in the BTC trading pair means that an altcoin season – even if it is short-term – is upon us.
Tezos has led the market alongside Ethereum in the past few months. If the two cryptocurrencies continue to show bullish signals against Bitcoin, there could be a period of Altcoin outperformance known as the Alt season.
Related reading | Whales are doubling on Tezos cryptocurrency amid the retail-fueled sell-off
Bitcoin dominance has broken away from a long-term trendline and could go much deeper, potentially leaving room for altcoins to rally. Before the coronavirus sell-off, altcoin purchase volume hit record levels, possibly suggesting that it had bottomed out and that assets would soon appreciate in value.
The recession has dampened those plans, but hopefully the altcoin season, which was then in its early stages, can still materialize – it can just take longer for these altcoins to regain momentum against Bitcoin.
Selected image from Pixabay
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