The Shift Into Altcoins Has Begun!

The Shift Into Altcoins Has Begun!

By Sapphire | Sapphire Crypto | 23 Nov 2020


Time To Stock Up?

In recent posts such as "Let's Explore The World Of Passive Crypto Income - Part 10" and "Alts Booming - Weekend Market Update!", I discussed the idea of starting to move into quality staking alts and alts in general. The problem with alts is that you really have to try and time your entry relatively well, so as not to be diluted in the event that alts devalue further. Bitcoin dominance vs the altcoin market is a good metric to keep an eye on but you have to remember that it is the entire altcoin market vs the Bitcoin market and while alts, as a whole may be weaker against BTC, there are also coins that are stronger. This metric operates on the law of averages, which means that though most are in a certain trend, there are those that have defied the trend.

Though it is obviously safer to wait until the entire altcoin market is signalling strength, it is not imperative, provided you have selected the correct coins. It seems as if others are also selling their BTC for alts at this time and that in and of itself is an indication that the trend will shift sooner than later.

Voices In The Space

The Wolf Of All Streets, otherwise known as @scottmelker on Twitter, recently posted that a possible altcoin trading setup could be approaching. Possibly, even a full full blown alt season, in the event that the Bitcoin dominance breaks down further.

Looking at the BTC dominance below, we can see that it is continuing to break down and should encourage a capital flow into the altcoin market. How far this is going to drop remains to be seen, especially as many believe that BTC is going to push hard to 22K or even 23K before dumping. 

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There is a silver lining for those who are entering the market with USD! Despite the fact that alts may depreciate against BTC, it is highly likely that they will appreciate against the dollar. There is not going to be one singular shift that will see the altcoin market break out against the BTC dominance! Throughout this bull run, the trend will shift constantly, just as with a typical spot purchase of any Crypto. The price does not just go up, it corrects, it consolidates and eventually over time, it moves significantly higher.

If you are wanting to hold altcoins in order to profit from moves in 2021, at some point you are going to have to enter the market. I always try my best to gain a good entry point and always look to average in on the drops.

Chico Crypto has also made it clear that he has sold a bunch of BTC to pick up some Kleros. Carl from "The Moon" has also sold 15 BTC in order to purchase ETH. Looking at the ETH/BTC chart below, ETH is really starting to breakout against Bitcoin.

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However, you choose to play this market, ensure you do sufficient research and understand the risks involved. This is not investment advice and any information shared here is purely informative. Opinions are my own.

 

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100% Passive BTC

 

 


Sapphire
Sapphire

Interesting views, news, opinions and all things Crypto. Independent and honest assessments of Crypto projects and earning opportunities within the space. Opinions are my own and not financial advice.


Sapphire Crypto
Sapphire Crypto

Interesting views, news, opinions and all things Crypto. Independent and honest assessments of Crypto projects and earning opportunities within the space. Opinions are my own and not financial advice.

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