Good Morning, Ladies, Gentlemen. Excited for a new week!
Since Bitcoin reached new All Time Highs after taking out recent high around $ 3000, we have not seen significant price action yet. We do need the confirmation trigger to get the bull run started fully on rising volume. Might take a while until we get to the trigger though, but be sure Fiat money is on the way into the markets, just needs some days to manifest. Similar to the spike in BTC, with it there is a new spike in interest concering cryptocurrencies, which is nice.
Today I wanna share an interesting chart of Coinmarketcap:
What does this chart tell us? Well, first of all, Total Market Capitalization is near its All Time High, which means if it gets triggered we see massive inflow of money into general crypto MKTcaps which will be sufficient to trigger the confirmation of BTCs earlier breakout. To be clear, the FOMO is developing, however not yet manifested. We will be looking at far higher prices next week, and especially in 1 month from now.
When it comes to ALTS, it becomes obvious that they lag a bit behind, which means that ALTS generally are in an upwsing but struggle a bit because of BTCs recent strong upmove. Which fits totally with what happened in 2013. BTC started the kickoff, ALTS lagged behind for some days, only to follow the same way a few days behind, rising exponentially to a degree in which ALTS tend to pump harder than BTC, which in turn means the ratio ALTS/BTC kicks up in due time. However it may need some more time to manifest in the markets. When BTC MKTCAP triggers its ATH, we likely see BTC being dominant until the point when ALTS MKTCAP triggers its ATH too. So generally speaking, a rising / spiking $BTC price is to be seen positively when you are positioned in ALTS, given you have the time and patience to survive the intial dip again. I generally do not advise to sell ALTS because being in there is clearly a winning move. If you want to take the risk and sell some ALTS when BTC spikes, you can obviously do it, just make sure you hit the buy button very quickly when things are about to turn upside again.
I do believe that the next two years will be the most magnificent we ever witness when it comes to excitement in the markets. imho, critical mass is about to trigger which means the crypto rally will then be superior to traditional and metal markets. Huge money inflow is expected from all kinds of industries which eventually leads to a global FOMO on indvidiual and business basis. If you have not yet a sufficient longterm strategy or portfolio, i *strongly* advice to do qualitative research about various coins and projects BEFORE $BTC triggers a new ATH. Time is running out, and if you are not well-positioned at this time, you will have problems in coping with the turbulences of coming weeks, especially if you are very shortterm oriented. There will be a time when it is very recommended to switch from Shortterm to Longterm Strategy, and the point is near.
Make sure you are absolutely satisfied with your holdings, and the coins you have picked. Money is not only energy, but also a vote. In this specific situation, it is a vote towards which coins you are going to trust in providing you a financial independent future. Look at your coins, are these coins that you trust so much that you will put all your investment into? If you are not allowed to touch your portfolio for two years, would you still be happy about your holdings or would you change it?
Some further brainstorming and research is recommended at this stage.
Besides, I decided i will post more articles on my Blog again, its been a long time and in actuality one of my most favorite things to do. So stay tuned, trade safe & have a nice trading day,