Home / News / Crypto currency chart of the week

Crypto currency chart of the week

China bans crypto currency

China bans (once again) crypto activities, and only news outlets seem to care about it. 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 optimize 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.

Leave a Reply

Top
Translate »