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What comes after a new BTC ATH? The Hype Train!

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Avatar for Pantera
Written by   793
1 month ago

BTC is about to achieve a new ATH soon.

The China ban in May led to a 50% drop in BTC price and also resulted in a trillion-dollar wipe out from the crypto industry. However, slowly the prices recovered and most cryptocurrencies are reaching new highs today.

During August, there was recovery, and Ethereum took the lead. It reduced the gap with Bitcoin and still looks like a strong candidate to take over the first place in market cap terms.

We have also witnessed an increase in the dominance of BTC lately. It was at a bottom of 40% and now rising above 47% inside a few weeks. This is the outcome of the BTC ETF approval by the SEC, and support to BTC by exchanges that increased dominance.

The number goes up

Source

Analyzing the current BTC trend, I find the odds of breaking into new ATH to be 99% and reaching a very higher valuation, perhaps 70-80k before it finds resistance. It could be in days, but it could also be in minutes while I am writing this article.

Nobody is selling currently and there is a positive sentiment that usually is not wrong in this particular moment (breaking in new ATH).

For investors in other cryptocurrencies (as me), I suggest not doing mistakes. I remember how I was watching the LTC chart in 2017 at $35 and how I sold all just to jump on something else that was "pumping". Missed a 10x this way.

I hold zero BTC and while I used to trade in previous years, I am not interested in it anymore. Still, If I was trading it, I wasn't going to put substantial money in BTC today. There is a very low reward to be made while other opportunities (such as Bitcoin Cash) are rare to find.

Last year when BTC was trading at 10k this was a good time to buy, this time I find this to be a very short-term opportunity with a high risk involved.

How the final stage takes place

BTC will make a parabolic upside rise with huge green candles once it breaks into new ATH. This is how it goes since nobody is selling.

Although, it is always heavily supported by exchanges that also proceed with boosting its price by selling reserves of their "altcoins". Eventually, the rest cryptocurrencies catch up, although as I remember it in 2017, there were times of pain with 25% loss and long wait time. Give it time and don't sell early if you plan for short-term gains. Currently, I am not, the plan is to keep holding. Moreover, I am investing in SmartBCH tokens and DeFi, which have a long-term potential to increase way more than BTC.

After BTC passes a certain threshold (which I haven't figured out yet how whales work), there is always a pump in prices of the rest.

Whales move out from BTC, and BTC begins losing dominance and price, while all cryptocurrencies enjoy a short-term craze. This is also the last phase of the bull run and BTC will try to regain the previous ATH but will fail since whales will begin massively selling every coin into USD and euro.

It will be the same, don't be disillusioned that this market will only keep rising. This can take a few more months and no more. Until the moment BTC is overthrown and another coin takes over the first place in this market, there will be bull runs and bear markets, both lasting years.

In Conclusion

Today we have too many that are already overvalued and they can still go higher more. After BTC, there will be a "pump" of Ethereum. This is how it usually works. Then all the rest. There will be a 20-30% rise in crypto-asset prices daily. Huge pumps that will eventually all crash to more realistic prices.

One piece of advice at this point, there will be plenty of shilling all the way. One coin that will 10x, will be followed by massive advertising and suddenly will become highly popular, just to achieve enough buyers so the whales of this coin can sell.

From my experience, this is what happened with XVG, IOTA, TRX, and a lot more in 2020 (LINK, Doge, Shiba). If you get in early in one of these hype-trains (before the hype begins), there will be a high risk that it won't succeed. If you get in late, you are gambling and risking too much.

In my opinion, hype trains don't worth it, so stick with the fundamentals. Since we know Bitcoin Cash is undervalued today, it is best not to risk moving to any other coin and risk wasting the plan.

After another huge increase in almost all cryptocurrencies, there comes the moment of realization. Prices grow to such heights that will no longer be sustainable and the crash begins. Everyone will be exiting fast enough and interest will return to normal.

ETFs, CME, Bakkt, Grayscale, etc., does not make a big difference. The bear market is there since this is the structure of the BTC speculative waves.

It was still early in May, and those that thought it wasn't over yet, they were right.

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Related Article:

Bitcoin Cash At $5,000 By The End Of The Year!


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Written by   793
1 month ago
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Comments

This is really what my expectations told me. Wait some few days, everything will be Clear.

$ 0.00
1 month ago

Nice one

$ 0.00
1 month ago

Very interesting analysis, and I always find something of value here from what you offer.

I am a bit of the mind that I will likely take some profits on BTC in the near term, although I am not exactly sure yet what my price target to do that is. But, maybe around 75k if it gets there which I think it just might.

I agree with you that there is often a lot of hype around many of these coins. I think some people a bit overzealous when things pump a bit, and suddenly you see people projecting what I think are astronomically 'excited' numbers. Probably something to do with the heart speeding up and pumping a bit too much oxygen to the brain. lol

As for the new ATH for BTC, I think it is clear what is behind it, and that is of course (I think as you mentioned) the ETF announcement. But that's just a short term thing—the excitement around it, that is. Once that news is old, BTC could retreat a bit and things get back to normal until the next big news story hits.

$ 0.10
1 month ago

Wow, what a great analysis of the crypto market, honestly, I was wondering why BTC is breaking new ground and BCH wasn't following. Although, I don't trade, I must confess that I was moved by the present position on BTC. So many of my friends have been asking why I didn't convert BCH to BTC, my answer was that I can't afford the higher fee with BTC. This post has calmed my nerves and gives me a very solid base to suppress the pressure from friends about BTC.

$ 0.00
1 month ago

It's like you have fully understand the crypto currency market and how it works.

$ 0.00
1 month ago

Not fully , but certain moments when odds are overwhelming favorite. Thanks, though.

$ 0.00
1 month ago

Your article was very useful. Thank you my friend, unfortunately, as soon as Bitcoin sees other currencies grow, it actually decides not to let other currencies overtake it. Its recent drop from 52k to 40k caused ETH to fall from 4k to 3k. And now the price of ETH doesn't arrive to 4k yet , Although bitcoin reached 64k today...

$ 0.00
1 month ago

Yes but Ethereum is also $4100 today. Only thing that hasn't pumped yet is Bitcoin Cash. Expecting this soon.

$ 0.00
1 month ago

Oh yes you are right I had not checked the prices since morning, how great, I bought ETH, I hope that good things will happen to Bitcoin Cash soon...

$ 0.00
1 month ago

It is happening already and I foresee people rushing into coins just to make a profit and they might eventually lose it all.

I think that it is important that we do our research before investing in any unstable coin right now doing away with greed would be very helpful.

$ 0.05
1 month ago

Speculation is rising. We enter the final phase. If retail follows it will be over in two or three months.

$ 0.00
1 month ago

This is crypto, but you know that Pantera. I did the same with TRX I sold all of it after holding them a while, than the price went up later. I missed some gains. Anyway this is what it is. What do you think about Cardano? Just got into smart contracts and DeFi.

$ 0.05
1 month ago

I was against all the hype on Cardano, as well as with Polkadot although that had considerably less. I am not sure though, unless it actually gets released. From what I see there are many developing on Cardano, so probably it will have a future. Remember EOS though, and how quickly it became irrelevant.

$ 0.00
1 month ago

Yes there are developments on Cardano, but what I noticed is some of them are delayed. I am not very familiar with EOS. Maybe the hype attracted me to ADA, and DOT also SOL and AVAX. There are just so many blockchains and ecosystems out there. I am glad to see BCH is developing now with Dexes and PAD.

$ 0.00
1 month ago

I feel that SmartBCH was required. It opens up the road to adoption in the smart contracts field which is essential, although it is still early. The rewards can be great but the early risk is always higher too. SmartBCH can just start trending one day, similar to how Solana did, although it doesn't have funds allocated for marketing purposes. It is pure organic growth.

$ 0.00
1 month ago

Yes I agree with that. The developers and the team behind BCH know what helps with adoption. I am sure a lot of us here as well are ecxited about SmartBCH, however to be honest with you I am not a very big fan of messing around with farming for example. I just like to hold the main coins or governance tokens.

$ 0.00
1 month ago

I so like the way these coins rate themselves, it's like a competition

$ 0.00
1 month ago