Just three months after reaching $20,000 for the first time ever, Bitcoin hit another impressive milestone, climbing above USD 50,000 for the first time ever yesterday. After hovering at $10,000 for most of 2020, Bitcoin has more than quadrupled its value since October 2020. Over the past 24 hours, the crypto market is mostly recovering from a red day, as the majority of the top 10 cryptos were deeply in the red. Although Bitcoin’s price is seen soaring high, there are several reasons why it is better NOT to buy Bitcoin at current prices, not because we don’t like Bitcoins, but because…well that’s what we’re going to discuss in this article:
Bitcoin Price is bound for a Major Correction
Yes, going on an extended uptrend for almost 11 months with brief consolidations is a healthy uptrend, but current technical indicators show a potential short-term price adjustment, in tandem with previous price-actions behaviors. Every milestone reached by Bitcoin prices was followed by a heavy adjustment, specifically the 30K and 40K marks (visible in figure 1). Today, Bitcoin prices broke the 50K level, will the price keep on going up like the 20K milestone behavior or retrace like the 30K and 40K? The latter is more likely for now.
Bitcoin Dominance is on the decline
Currently sitting at 62%, Bitcoin’s dominance is dropping. What’s Bitcoin dominance you might ask? Great question:
BTC dominance shows the percentage of BTC Market Cap relative to the WHOLE Crypto Market Cap, to show the percentage of BTC cap to all other crypto Market Cap.
“So what if this percentage is dropping” you might be asking…Another great question! Well, this means that Bitcoin’s influence on the cryptocurrency market is weakening, forcing a less correlated behavior between different cryptocurrencies. Gone will be the days where a justified drop in Bitcoin prices will drag the whole cryptocurrency market in an unjustified way. This also gives more space to invest in new cryptos and hints at the beginning of Altseason.
So I shouldn’t Buy Bitcoins, right?
Absolutely not! We’re not saying Bitcoin is a bad investment, we’re just saying that it would be a good idea to wait for a significant drop in prices, and catch Bitcoin at better prices. You can also be on the lookout for cryptocurrencies that are still growing and have a huge growth potential. For that, check out our articles below, all the coins we suggested in the past made more than 10x:
- Low Cap Altcoin Treasures with 50x Potential – Top 3 Picks
- Top 5 Altcoins to BUY in February 2021
- Top 5 Performing Cryptocurrencies of the Week – (Week 29)
- How To Stake Aavegotchi GHST Tokens On Polygon (Matic Network) L2 Gas-Free!
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