With bitcoin having been in a sideways trend since early December, the time is approaching when the king of the cryptocurrencies starts moving into a continuation of its bull market. Is your altcoin portfolio ready?
A resumption of the bull market
Bitcoin is nearing the time when it is likely to make its next major move. This said, there is always the possibility that this can be to the downside. Many called for a deeper correction than the 21% that has so far been recorded, and a 30% retrace would have admittedly been a lot more healthy for this current bull market.
However, based on all previous crypto bull markets, sizable corrections or not, there is the halving, and then the bull run gets going in earnest. We are still two months or so from the halving, so that is plenty of leeway still for some significant price action.
While in the short term, probably over the course of this week, there is still room for some more sideways and downwards price action, bitcoin’s corrective wave is probably coming to an end.
Altcoins?
No prizes for guessing how the altcoins are going to react to this positive factor. Therefore, for those chasing what could be far larger gains, making the last buys for those bull market altcoin portfolios is perhaps the way to go.
Obviously, when buying altcoins there is far more risk involved. Bitcoin has what is generally perceived to be a fairly solid use case of a store of value. Perhaps with the exception of Ethereum, and one or two of the major altcoins, this is not the case yet for the overwhelming majority of the crypto sector.
Extreme uncertainty in traditional finance system
That said, the world is going through a period of extreme uncertainty in traditional finance. Many banks in the United States are only still operating due to the Federal Reserve loaning them cash.
China is on the edge of a massive economic breakdown, and fewer and fewer buyers are turning up at countries’ bond auctions, meaning that central banks are going to have to do a lot more currency printing, leading to a further acceleration in the decrease of purchasing power for normal people.
Worth the risk?
With this in mind, people are turning to crypto. Yes, the risks here are great, but with the worth of their fiat currency losing value by the day, those that can see this happening are desperately casting around for somewhere to put their wealth.
The more fundamentally sound cryptocurrencies are perhaps somewhere to take a bet. One only has to look at the very probable continuation of the rise in bitcoin to realise that altcoins are likely to be borne up on the wave of institutional buying into crypto’s top asset.
For those who are going to make that altcoin bet, it would be wise to avoid leverage, especially if you are not a professional trader. Also, there are thousands of altcoins. Going too far out onto the risk curve is also akin to a spin of the roulette wheel. Place your bets wisely.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
