Were you one of the few who bought the dip?
Now that the Lunar New Year is behind us, sentiment towards cryptoassets has become more positive overall and bitcoin is now ignoring bearish signs, as evidenced in the past week’s 90% rise from a low of £4.3k ($6k) on February 6th. So the question remains — did you buy the dip? If so, at what stage?
You likely missed out on the bottom, as it only lasted for a couple of hours and it’s not easy to be on the computer for every great opportunity…at least until LBX’s mobile app comes out very soon! The timing was made even harder when everyone thought bitcoin would keep dropping below £3.6k ($5k) that day, given the speed of its descent.
Now that bitcoin has broken through £8.3k ($11.5k), it has started to drag down ether and most other major alts. The exceptions from the drop are litecoin and ethereum classic, two projects that are on the rise due to forks that (confusingly) promise holders new tokens for free.
The total crypto market cap is now back above £350BN ($500BN) for the first time since February 1st — a day that looked like the reversal but ended up being just another bull trap. Do note, however, that we have only left the January downtrend channel, not the December one.
For cryptomarkets to feel ‘safe’ — at least while most alternative cryptoassets are traded against the dominant pairing of bitcoin — BTC’s price would need to clearly sustain itself above the £7.9k ($11k) resistance, at around £9k ($12.5k) over the next few days (or even weeks).
If you consider yourself a poor trader, ‘hodl’ or stay out of the market except for low-risk plays. If you consider yourself a poor investor, it may be a bit late to chase green candles such as VeChain’s. Look out for the next hidden gems instead!
Register for the Genesis London Conference, which takes place at The CityPoint this Thursday. It will last for 8 hours, with 15 speakers for the 300 attendees.
Understand what’s happening with Ethereum Classic — a project that forked of Ethereum after 2016’s DAO hack — and why it could reach an all-time high today.
Beware of ICO scams — a new one just arrived in Sweden. Check here on how to spot them!
Bitcoin’s fees spurred a major debate at the end of 2017. Coinmetrics.io has great tools for this, as displayed in this interesting article that analysed the transactions cycle!
Tether continues to make our reading list. Yesterday, Ari David Paul — CIO of BlockTower Capital — entered various long Twitter arguments. Here’s one!
Bitcoin Cash’s main argument is that it represents Satoshi Nakamoto’s true vision, but Max Keiser — a famous entrepreneur — disagrees, stating that they “got it wrong”.