Bitcoin is about 5% down on the day so far, equating to a $3,500 loss on the day so far. Some of the altcoins on the other hand, are down more than 10%. With $BTC potentially holding at this level, could now be the time to get into those altcoins you’ve been wanting to buy for ages?
Day is improving for $BTC
The day is perhaps looking less bad than it could have been imagined earlier on. From Friday’s high price of $72,250, to the lowest price at $65,550, was a total 9% fall for bitcoin, equating to nearly $7,000.
However, as the day has moved on, the support at $65,550 has held, and the price has reversed back above support at $68,000, with another nice long wick starting to develop beneath.
Just another wick down?
Source: Coingecko/Trading View
The thesis is that this is just another in a series of wicks to the downside in the $BTC price. If the price follows the same pattern, this will be the fourth such wick down in the last 11 days. All the previous wicks were bought straight back up again.
Many altcoins in good buy zones
If this is going to be the case, buying some of the top altcoins with the best upside potential might be an extremely decent play. At time of going to press, Solana (SOL) is already back in the green. A big mover currently, $SOL is leading most of the altcoin pack.
Most of the leading altcoins have already improved on what was a 10% plus price dip, and are now reversing course. Another factor to take into account is that the stochastic relative strength indicators (RSIs) have completely reset for the short and medium term, so momentum could be starting to cross back up for many.
Filecoin (FIL) a likely mover
Source: Coingecko/Trading View
A good example of this is Filecoin (FIL). Stochastic RSIs for the 4-hour, 8-hour, 12-hour, and daily, are all in oversold territory. The price has held the uptrend, and has bounced nicely. We can perhaps expect some more upside from here. Many other leading altcoins are in a similar position.
Traders must be aware though that the market can always do the unexpected. Proper risk management should be employed which includes stops set at the appropriate levels. Trade safely.
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.
