Published 26 Jul by CryptoDiffer Team
Highlights on Suppoman
“WHEN & WILL ALTCOINS RISE LIKE BITCOIN?”
Apparently, the market has woken up and the bearish trend is over. For the first time in a long time, the market capitalization exceeded $ 300 billion, and the 24-hour trading volume grew by $ 6 billion. Bitcoin went above $ 8,000, and, noticeably, the altcoins began to grow. Today, let's talk about whether the altcoin will grow after the BTC.
Last time I looked at the BTC chart from the viewpoint of Elliott waves and concluded that the 5th wave would bring us a price of $ 8,500 or more. The next level of resistance that Bitcoin needs to overcome is $ 9,000, which is the moving average for 200 days.
Now RSI is in the overbought zone, which slowed down growth and corrected Bitcoin to ~ $ 8,200. Also, remember that most recently BTC was in the overbought zone for several days. This indicates that players in the market saw value in Bitcoin (an advantageous risk/reward ratio) and began to accumulate it.
Overbought Bitcoin will eventually lead to correction and the money will smoothly move to altcoins. The reason for this is the understanding of traders that, in relation to the BTC, many altcoins now look very attractive. This process is indicated by the absence of changes in market capitalization with the correction of BTC. There is a feeling that at the moment, small investors are late in closing their positions in the altcoin, moving to BTC, and large investors are doing exactly the opposite.
Conversations about the ETF have been ongoing for 2 weeks, and, the longer they last, the more optimistic sentiments appear on the market.
The main reason for the growth of BTC in this article is the publication in The ICO Journal, which tells about two anonymous sources from the SEC and the CFTC that reported that the ETF will be almost exactly accepted this year, possibly in September. Even if this does not happen immediately, it will still happen, because the process is already running. Again, I do not believe that the SEC will simply adopt ETFs without a carry-over of dates. We observe this practice quite often, the latest example is the transfer of the big twenty meeting on cryptocurrency from April to October.
Bitcoin is experiencing the most growth in recent months, while the cryptocurrency market is recovering (source):
A popular journalist in the UK is removed in the story about BTC, which can attract new investors.
To get more publicity, Bitcoin needs to overcome the price level of $ 10,000. Journalists need high-profile news to drive traffic to their resources.
If we compare Bitcoin with the main driving force of an economy similar to the national currency, then its growth will entail the growth of the entire CIS crypto-currency market. Last year, several forks of Bitcoin occurred on the market, which promised free distribution of coins to investors. Thus, players in the market accumulated BTC, and at the time of fork, they switched to forks/altcoins. This year the situation is somewhat different. ETF will directly affect BTC, and large institutional investors will have access and will only keep it (at least from the beginning). Thus, the likelihood that people will actively withdraw money from Bitcoin to altcoins in today's market is significantly less. However, this does not eliminate the fact that there will always be traders in the market with diversified portfolios, for example, I am one of them. It is important to understand that Bitcoin is good for preserving your funds, while altcoins are necessary for their substantial growth, you need to be prepared for any development of events. For example, in November last year, before SegWit 2x, Bitcoin grew rapidly, people closed positions in altcoins and switched to BTC. However, they should have left some positions in case of a sudden jump in altcoins, since a week later the picture on the market became directly opposite. There is a high probability that the adoption of the ETF will be postponed and people will start leaving the BTC for altcoins. If you have a diversified portfolio, even if you take ETF, you will still win, as in this case, all assets will eventually grow, as it was in December-January.
Questions / comments:
1. I do not like the fact that centralized institutions come to cryptomarket.
Centralized institutions and whales can not be stopped. However, no one can stop the technology and make it decentralized. All that the big players can do is accumulate large stocks of assets in order to gain certain power. This happens all over the world, for example, with oil or precious metals. All that needs to be done is to accumulate crypto-currencies and keep them, thus decentralizing them. On the market often there are manipulations and so-called market makers are always in the business. State regulation will squeeze out unscrupulous projects, fraudsters and manipulators from the market.
2. The decision on ETF was postponed until September.
I was right. This may have affected the inhibition of growth. However, do not be naive and believe that the big players did not know about such an outcome. Most likely, that is why we are now watching the redistribution of capital into altcoins.
3. Balina says, Red Pulse died.
Now almost all projects are in a drawdown. The Red Pulse has quite a healthy volume and is a decentralized application for Neo, which distinguishes it from a large number of similar ones on the ETH. I believe that it is somewhat incorrect to state that the projects are dead. Yes, the HYIP left, but it does not kill the company itself. There are more than 1600 crypts in the market, so there is a constant struggle between the projects in an attempt to prove to investors (preferably large ones) that their money is invested in a profitable business.
4. What do you think about ChromaWay?
I know that one of the participants of the main Bitcoin development team is involved in this project and I think that this is one of the most interesting pre-sale now on the market.
This highlights is a direct translation from ICODROPS post