Why Q2 Crypto Performance Is Astonishing, YES Astonishing

Are we nearing the bottom or is there is more room for a downside move? Many think that we have almost reached the bottom or very near enough to form that. This debate could go on forever and one can spend a lot of time on this topic. However, one element which cannot be ignored is that the Average Trading Range (ATR) for Bitcoin has dropped and this tells us that Bitcoin isn’t the same animal it used to be.

The Average True Range (ATR) for bitcoin in Q2 dropped from $400 to $140. If you compare this to Q1, the number would open your eyes, the average true range for bitcoin during Q1 peaked at $1400 and dropped to $166. Generally, the average true range explains the volatility, and lower ATR is associated with lower volatility.

In Q2 Bitcoin was, sadly, the worst performer coin in Q2 out of the top five coins by market cap. Its quarterly performance has been -4.32%, and the market cap has also dropped. The best-performing coin out of the top 5 coins (by market cap) has been Ethereum. It has gained nearly 23.12% during Q2. Ethereum Classic is not far behind, with its quarterly gain of 22.88%. Bitcoin Cash took the third position with a gain of 19.85%. Ripple, a coin whose community is strongly behind it, failed to impress investors as well. The Q2 performance is -1.98%.

Nonetheless, there is something important for readers to pay attention to: if investors had invested in all the top five coins by market cap at the start of Q2, the net gain for this portfolio at the end of the Q2 would be 59.55% gain (23.12+22.88+19.85-1.98-4.32), an astonishing return. Needless to say, none of the stock markets have performed like this.

ThinkMarkets, Twitter: @NaeemAslam23

Ethereum was the best performing coin for Q2

To find the real momentum, we need to make a comparison between Q1 and Q2. The chart below shows Q2 in blue bars and Q1 in orange bars. The performance is measured by taking the opening and closing price of each coin for each quarter.

ThinkMarkets, Twitter: @NaeemAslam23

Bitcoin is still under-performing and lacks momentum

Once again, it becomes clear that the momentum behind Bitcoin isn’t that strong at all: its performance during Q1 was -50.59% and Q2 saw another drop of -4.32%. Bitcoin Cash is the coin the real momentum is because it dropped nearly -72.97% in Q1 but in Q2 it recovered 19.85%. Ethereum Classic and Ethereum can be called more stable coins, for two reasons: the drops were less dramatic in Q1 (relatively speaking) and gains have been the strongest among its peer.

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