Why Altcoins are Falling Badly 🟥
Reasons behind the current drop in the Altcoins market are twofold.
Firstly, the impending announcement of a Bitcoin ETF in January has led many traders to anticipate its approval. As Bitcoin tends to dominate the market, a widespread sell-off of Altcoins is occurring, with investors shifting their focus to Bitcoin in anticipation of a potential price surge following the ETF approval. While some believe only Bitcoin will benefit from this, it is argued that the entire crypto market stands to gain.
Secondly, after weeks of consistent gains, Altcoins are experiencing pullbacks, a normal part of market cycles. The recent upward trend lacked significant weekly pullbacks, making the current decline a potential correction. In bullish markets, pullbacks of 30% to 40% are common due to the volatile nature of the crypto market. Monitoring high timeframe charts is crucial during these pullbacks, ensuring a focus on key areas rather than blind buying during periods of weakness.
In conclusion, it is advised to wait for the market to demonstrate strength, observe reactions to news, and assess high timeframe charts before making investment decisions. The current slow bleed in the market suggests a cautious approach, avoiding impulsive buying during periods of weakness.
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