Bitcoin and the altcoin market have been on a tare lately as Bitcoin has accelerated to $10,300. After such a dramatic movement, expect a short-term pullback. What should a trader or investor do now?
Bitcoin and the altcoin markets have gone from oversold to overbought. Many altcoins are up over 100% year to date, and Bitcoin has posted over a 40% gain in 2020. Two factors stand out in the cryptocurrency market. Bitcoin's market dominance has fallen to 62.5% and the market cap of the cryptocurrency market has surged to $300 billion. The altcoin resurgence is a real movement supported by investors moving money from a rising Bitcoin into the altcoin market. This is good news for both investors and traders.
A good article regarding the recent 5% surge of Bitcoin's price to $10,300 can be found at the link below:
Money is moving from institutional investors and the CME options market has supported the moves. The altcoin market is rocketing up, with many coins that came about during the cryptocurrency winter surging currently. As a trader, look to blue-chip cryptocurrencies including Chainlink, Tron and EOS. All of the aforementioned altcoins have surged recently and may continue to do so until Bitcoin crosses $11,000 and the inevitable pullback approaches. Bitcoin is oversold when looking at technical indicators, and the $11,000 mark is psychological as well, which may trigger a pullback shortly following that level.
As a trader or investor, now is the time to take profits and crystallize these profits before the inevitable selloff. Expect volatility to pickup before the Bitcoin halving in May of 2020. I have recently sold some outperforming altcoins including EOS and Tron, and am holding USDT and DAI in anticipation of the short-term dip.
Originally published in my Publish0x blog I own at:
Also published in my Weku and Steemit accounts I own.
Picture from Pixabay.
https://www.coindesk.com/bitcoin-is-most-overbought-in-2-years-after-price-rises-back-above-10k