As someone who has been closely following the cryptocurrency market for some time now, I cannot stress enough the importance of self-education before engaging in any trading activities. The current market situation with Bitcoin languishing below $64,000 and most altcoins still in the red can be nerve-wracking for traders, but it’s crucial to remember that every decision we make is our own responsibility.
As bitcoin hovers around the $64,000 mark and most altcoins continue to underperform, investors find themselves on edge regarding their holdings. Facing the dilemma of whether to purchase more assets or offload some, they must carefully weigh their options.
As an observer, I cannot stress enough the importance of recognizing that the buying and selling of digital assets in the trading game is solely your responsibility. While listening to traders on social media can offer valuable insights or even save you from potential pitfalls, it’s essential to remember that everyone’s situation is unique. Therefore, investing time and effort into educating yourself about the dos and don’ts of trading is an absolute must before making any investments.
Altcoins giving cause for concern
Setting that aside, the present condition of the altcoin market may raise red flags. Typically, altcoins mirror bitcoin’s trend, as seen in most cases. When bitcoin rises, altcoins usually follow suit, sometimes even more dramatically. Conversely, when bitcoin declines, altcoins tend to fall harder and faster than their leading counterpart.
I’ve noticed that bitcoin is currently hovering close to its robust support level at around $61,000. It seems unlikely that altcoins will experience significant growth until bitcoin stages a notable rebound first.
Total3 bull flag
The Total3 graph indicates the collective market value of cryptocurrencies apart from Bitcoin and Ethereum, currently hovering around the $647 billion mark as a potential support level.
I’ve observed that the price formation on the weekly chart resembles a bull flag. This pattern can be quite potent given its time frame. If the price manages to hold above the support or even dips below but bounces back, and then breaks above the upper trend line, get ready for some potentially explosive price action.
$1 trillion target for bull flag
From a broader perspective, it’s clear that during previous market peaks, such as in 2020 and 2021, the total value of altcoins failed to surpass their past highs. However, it’s important to note that in earlier bull markets, most altcoins generally underperformed Bitcoin until the late stages. This is when investors started shifting their funds from Bitcoin into altcoins during the parabolic surge phase.
It’s uncertain if events from past bull markets will repeat themselves in this current one, or if things will unfold differently. On a hopeful note, the Total3 bull flag is yet to reach its full potential. Should there be a clear upward trend continuation, the estimated price increase based on this pattern could lead altcoins towards the $1 trillion market cap, which isn’t a significant leap from their previous high during the last bull market.
Financial education is vital
Investing or trading in cryptocurrencies comes with significant risks. However, if one manages to purchase an altcoin at a low price and it subsequently surges, a sizeable profit may be realized. Conversely, buying into an altcoin just before a sell-off can lead to substantial losses.
Considering the volatility of altcoins in the market, it might be more prudent for inexperienced investors to let the professional traders handle buying and selling. However, keeping your funds in a bank isn’t without risk either, as inflation can erode your wealth over time and decrease its purchasing power.
In today’s complex financial landscape, navigating through it may prove challenging and could potentially become even more difficult in the future. To ensure you’re prepared, invest time and energy into learning about fiat currency and various assets such as bitcoin and altcoins. Your financial well-being could hinge on this knowledge.
Read More
Sorry. No data so far.
2024-04-25 18:02