Saturday, 9 May 2020

Why Altcoins Bouncing as Bitcoin Retraced From $10K Is Bullish

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 Bitcoin price is struggling to crack $10,000 while other cryptocurrencies are attempting to catch up during the weekend lull.



The price of Bitcoin (BTC), the top-ranked cryptocurrency by market capitalization, hit the psychological barrier of $10,000 but immediately rejected. Meanwhile, the sentiment is shifting from fear towards greed as the Crypto Fear & Greed Index is now above 50 for the first time in three months.
However, altcoins have been showing weakness across the board. Investors are selling their altcoins to catch the Bitcoin train with the halving now less than three days away.


Crypto market daily performance. Source: coingecko


Bitcoin hits the psychological level of $10,000

 

 BTC USDT 1-day chart. Source: TradingView

 

Bitcoin is showing strength as the halving is approaching with the hype only increasing by the day. FOMO (fear of missing out) is increasing as well, which makes people eager to step into Bitcoin and the price to rally heavily.

However, is such a rally sustainable, or will this be another case of “buy the rumor, sell the news”? Based on the previous halving and the previous halvings of Litecoin (LTC), this is entirely possible.
People get intrigued by the hype around the event, as they expect a short-term bullish outcome to occur on the markets, and they start to buy into Bitcoin.

Where can we see that? In general, these movements can be spotted in the altcoin markets. Usually, when Bitcoin sees a big rally, people FOMO into Bitcoin. One such example is Ether (ETH).

eth/btc
 ETH BTC 1-day chart. Source: TradingView






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