How is the cryptocurrency market behaving?
- In the long run, it goes up;
- In the medium term, it stagnates ...
- In the short term, it goes up!
Total capitalization of the crypto market: daily chart
The only scenario that I think is worth considering is looking for purchases on a cryptocurrency listed in USD, or staying out of the market.
The idea if you are active would therefore be to position yourself on the most beautiful configurations with short-term risk management. If the market is with us, we will take a medium-term trend that will go back up. If this stagnates in the medium term or the trend turns around, we will be driven out of the market.
Where does the money go in cryptocurrencies?
So we know that we are ready to enter the market if there are opportunities. Let’s continue with the procedure leading to a purchase.
Bitcoin or altcoins?
Certain periods have shown that it is better to buy Bitcoin, and go back to bed. Others have shown the opposite, and this was particularly the case for the upward period preceding the coronavirus. Is this still the case ?
This graph answers the question:
Performance of Bitcoin and altcoins compared to the crypto market
Reminder: everything below the black line underperforms the market. Conversely, what is above outperforms the market.
In the short term, altcoins outperformed Bitcoin (15 day chart window). In the very short term, however, we may have a change to watch out for. This change would imply that Bitcoin would take over and become the strongest asset on the market.
Now that we know that over the past 15 days, altcoins have outperformed the market compared to Bitcoin, we are going to dig deeper into the matter by trying to find out where to go: small caps? Large caps? Between ? Where should we shoot? 🎯
Bitcoin performance according to their capitalization versus the global cryptoactive market
This graph also leaves no doubts on the subject: it is necessary to tamper with small caps. From the market capitalization ATH (when Bitcoin came to type the $ 10,500):
- Low caps gained 10%
- Mid caps gained… 0%
- Big caps lost 3.3%
Warning: These were my personal thoughts and not investment advices.
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