The pandemic is considered a tipping point for Bitcoin, however, after hitting a high of $ 12,000 in August, Bitcoin’s price has caused retail traders to stall. Based on Bitcoin’s market cycle, we are in an accumulation phase and the price could move higher in the next few weeks, however, the reaction of institutions and retail traders has a big effect on it.
When you run rocket gifs, bullish tweets, and headlines like – Bitcoin will hit $ 400,000, you know it. You know you’re crossing the threshold of change, maybe headed for a different one! There is enough pressure on retail traders from uncertainty and volatility in the cryptocurrency market.
Bitcoin price is up 7.2% in a week and 10% in 30 days. With this leap forward, there are mixed reactions on Crypto Twitter.
“I think we filled those gaps in the low $ 11k zone before we got much higher ($ 13k territory). But I told myself that I would make an excuse to play the dragon just because the high PNL would terrify me, which is exactly what was happening. There are two wolves inside of me ”.
Keeping a little longer comes at its own risk. Bitcoin’s 60-day volatility is currently at 5.04%, a month ago at 10.9%.
Bitcoin’s 60-Day Volatility | Source: Woobull
Based on data from Bitcoin’s 60-day chart, it took less than 30 days for volatility to double or drop below half. Currently, the price is above the 200-day MA and the Mayer Multiple is at its lows. However, this can change overnight, if the inflow of money into exchanges increases through mining pools or whales. When the price crosses $ 10k, 83% of HODLer is expecting unrealized profits, at $ 11.4k there is 89% with unrealized profits.
In such a volatile environment, a conformist can go on, while an objection may decide to take profits before rejoining.
The reward / risk ratio is skewed in Bitcoin, however, trading in alts can bring more benefits. Every alt rally has a single altcoin leading, and that’s where most of the profits are recorded. During the historic price rally in 2017, it was XRP and this time the possible candidates were LINK and BCH. LINK is up 21.02% in a week and BCH is right behind with 13.45%.
If opening new positions on Bitcoin is too stressful, then two-digit profitable altcoins could be the next best bet. XRP increased from $ 0.25 to ATH of $ 3.84. This 1400% price increase could be reflected in the next rally. LINK, ADA and ETH continue to rise and based on DOT returns over 24 hours, XRP could become a competitor in the coming weeks.