Why Altcoins Bouncing as Bitcoin Retraced From $10K Is Bullish
By Michaël van de Poppe
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.
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 1-day chart. Source: TradingView
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