Is It Time To Begin Thinking About Altcoins?

The Altcoin Market Needs Some Action

Looking at Bitcoin, the price is still relatively strong despite suffering multiple dips over the past while. In actual fact, it’s starting to look rather bullish! The market has previously been in a state of uncertainty as it knocked around between $30K and $40K. Currently, we are witnessing a potential inverse head and shoulders pattern forming that could see BTC regain the 60K zone if validated. A confirmed breakout of the neckline literally has the ability to introduce a fresh bullish bias. There does appear to be some resistance at $45K, which is to be expected. We will have to monitor how this pattern evolves.

Image Source – Binance.com

Altcoins on the other hand are not looking so good as a whole. There are however projects such as MANA and MATIC that have not lost much ground at all. The majority of the altcoin market is however quite heavily in the red. Bitcoin usually steals the show when it makes a strong move but altcoins also catch a delayed thrust of momentum. So, one needs to consider what could transpire if this inverse head and shoulders pattern plays out for Bitcoin!

Waiting For A Confirmation

This would generally be the wise approach, especially for traders. Long-term investors are at far less risk and if they have an ongoing scheduled strategy of accumulation, can always increase holdings at lower levels. Despite what anyone says, the hodler is always in the safest seat and is able to ride out volatility with far less stress. I have started slowly increasing exposure to a handful of alts, as mentioned in a recent post.

This is a very modest allocation, as I too want to see more bullish confirmations. What encourages me to do so now is that these are long-term holds and I am happy to buy at these levels.

Not Set In Stone

That is the thing, each investor needs to assess his own personal situation and then act and plan accordingly. There are obviously pearls of wisdom that everyone should consider but then there is also a lot of room to move within the boundaries wisdom creates. I definitely would not go in guns blazing at this point, as the market really does require a significant indicator such as the confirmation of the pattern I have just mentioned. Sometimes a perfect opportunity can dissolve right before your eyes. In this game, confirmation creates confidence and subsequently increases the odds of success. This, as you may well know, is not necessarily a guarantee of success.

How Do The Odds Look?

It’s a game of probabilities and that’s as sure as it gets. This is especially true of the world we are currently living in. Constant chaos and unpredictability place markets in a very fragile position. Risk-on assets are especially vulnerable and investors need to be aware of what is taking place on a macro scale, as well as alternative markets. Uncertainty can also encourage and feed volatility, which is not necessarily a bad thing, especially for traders. Actually, volatility is the lifeblood of a skilled and efficient trader.

Work With The Market

On the other hand, a sideways market can actually be the friend of an investor with a long-term horizon. If the price is constantly appreciating then he is in essence paying more for his coins each time he buys. Sideways price action provides an extended opportunity of being able to accumulate at a set price, rather than a price that is constantly becoming more expensive over time.

Like I have often said, there is always an approach that can and will benefit in any market condition.

Final Thoughts

It would be a caution worth respecting to wait for a bullish confirmation pattern on a larger time frame to actually confirm before blasting into the altcoin market. If you are like me and have some very long-term ideas, you can begin accumulating modestly. This is obviously not investment advice but rather what I am doing right now in regard to altcoins.

Disclaimer

First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.

This article was first published on Sapphire Crypto.