So here is the state of the market: Bitcoin is going parabolic, major alts like ETH are holding up, low caps (alts with low market caps) are getting crushed, and lots of big news (bearish and bullish) is all being met with BTC increases.
So I won’t cover every aspect of this in the article, but here are some things to note:
- When BTC runs it can just keep running. Often it won’t take alts with it. This is all part of the Rotation. This is normal, you want to be in BTC in times like this, then after this phase ends you’ll look to coins like ETH, LTC, XRP, and other large caps. If they start moving, you might see low caps have a nice recovery. Keep an eye on Bitcoin Dominance for clues.
- The news has been full of bearish and bullish occurrences. We had the Bitfinex and Binance FUD, and now we have some bullish news like Starbucks accepting crypto via Gemini. Also we have the annual CoinDesk Consensus which is generally a time when crypto rallies (in a good year). I can’t get into every detail here, but in short the positive reaction to a lot of big news is very bullish.
- Expect a harsh correction. At some point we will get our first harsh correction of 2019. We could easily drop 30% and still retain the bull trend, alts may not be in play until that full move is done… we don’t now. The trend is your friend, from there it is all about keeping a close eye on trend changes.
- Whoever manages to catch the bottom of this alt run is likely in for a wild ride. The problem is every day you mistime the bottom you stand to take a giant hit. Think about averaging or get ready to pounce when alts come back into play. XRP and ETH should be able to give you an early warning, they are looking decent, but we need them to move to know alts are back in play. So far mostly BTC and some simple transfers BTC-like coins like LTC and BCH have done well in this phase… and really though, BTC has outpaced everything lately. This could keep up for any amount of time, so enjoy it until it ends.