Bitcoin (BTC) is up today against most altcoins, trading at a price of $7,700 as shown by the daily BTC/USD chart above. It seems to have met resistance short term and the price might pull back short term, but a strong FOMO for Bitcoin (BTC) is clearly visible as investors refuse to sell even under overbought conditions. At the centre of this FOMO is Bitcoin(BTC)’s long anticipated ETF (Exchange Traded Fund). This would no doubt be a big development for Bitcoin (BTC) as traditional investors would be able to invest in Bitcoin (BTC) using most of their existing brokers. However, for the rest of the market it will once again be bad news as altcoins bleed while Bitcoin (BTC) surges higher and higher.
Looking at the charts and present market conditions for most altcoins, it is clear that most altcoins have already bottomed out and are now just lingering around, waiting for the rest of the market to take off. This means that barring the approval of an ETF, an altcoin rally should be around the corner. Crypto investors who have been around for long know that at the beginning of each trading cycle, there is an altcoin rally, which is then followed by a Bitcoin (BTC) rally as most investors take profit. Given the fact that most altcoins are traded against Bitcoin (BTC) and that Tether (USDT) is seen as a risky investment, most investors take profit by converting their altcoins to Bitcoin (BTC). The result is a Bitcoin (BTC) price surge as money flows from altcoins to Bitcoin (BTC).
Bitcoin (BTC) has currently topped out according to the BTC/USD 4H chart above. Typically, what we have seen happen time and time again is that news and announcements favor the charts. In other words, if a market has reached bottom, favorable news will come out to propel the prices higher. If the market has topped out, negative news or FUD will come out to push the prices lower. In the present scenario, if we ignore the possibility of an ETF anytime soon, we are at the verge of an altcoin rally. While the ETF may or may not be announced anytime soon, it is clear that market conditions already favor an altcoin rally regardless of any news or announcements. This would make altcoins the best bet for investors looking to get a higher return on their investment.
The past few days, we have seen a decreasing number of investors who want to trade their altcoins for Bitcoin (BTC). It is plausible to assume that the recent Bitcoin (BTC) ETF FOMO was just a ruse to force investors to dump their altcoins so the whales can pick them up at cheaper prices. Now, of course when people dump their altcoins on exchanges, the whales are not going to prop the price up by buying on the same exchanges. They buy OTC (over the counter) and then let the mainstream investors push the price higher when the Bitcoin (BTC) ETF FOMO fizzles out. It is good to be optimistic but overall market conditions at this time do not favor an ETF announcement. It is likely though that a Bitcoin (BTC) ETF may be announced around the peak of the next altcoin rally.
Read more at: Crypto Daily