Bitcoin’s recent weakness is proving the opportunity to other cryptocurrencies to shine, offering investors and traders interesting volatility to exploit. Others like Altcoins.
The red line on the chart shows how Bitcoin’s dominance is rapidly falling, meaning that new capital flows into Altcoins. Every trader has to keep these dynamics clear in mind when assessing what the most appropriate investment strategy to run is. Despite Bitcoin pausing from its exponential uptrend, the fact that the rest of the market is still witnessing solid strength is a strong validation that the macro picture is positive and the Bull Market is still in place. In the past months, those following our market updates can now recognize the value of Bitcoin’s dominance as a valuable metric to gauge the evolving stages of this Bull cycle.
If you feel like you missed out on buying Bitcoin at lower prices, Altcoins can give you a second chance. Profiting from Alts and selling to Bitcoin in the following weeks will likely be a unique opportunity to accumulate more BTC before the next leg up.
This week the rumor of Facebook adding Bitcoin to its treasure reserves unfolded as just pure speculation. But it may be just a matter of time when the next large corporation announces to have entered the crypto space. And with a Bitcoin supply that keeps shrinking on the exchanges, the price direction can only be on the upside.