China bans (once again) crypto activities, and only news outlets seem to care about it. The Crypto market reacted differently.

A positive reaction to bad news is one of the most bullish signals experienced investors wait for to assess the market’s mood. You could argue that China’s FUD is now almost no news anymore, but it can always represent a new opportunity for speculators to push the market lower.

The market barely reacted to the news, and it remains in pause mode before moving to the next phase. Looking at the broader picture, you can see how the market moves in cycles, which last on average two to three months.

The chart shows how Bitcoin’s price (orange line) and dominance (blue line) evolved over the last year. By combining both trends, you can evaluate how to optimise your portfolio allocation and what strategies could work better in the next couple of months.

Should the sequence of market phases start back from October 2020, Altcoins may significantly underperform Bitcoin . In perspective terms, Bitcoin Dominance is currently sitting at record lows, which validates, even more, this thesis.

Time will tell, meanwhile better adopt a flexible approach and be ready to handle the next chapter.

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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.

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