Crypto investors should not be blindly bearish or bullish but rather look at the market and make logical decisions, according to a video posted by a cryptocurrency influencer on YouTube. The YouTuber outlined four scenarios for investors to consider: if the market goes up and bitcoin dominance goes up, if the market goes up and bitcoin dominance goes down, if the market goes down and bitcoin dominance goes up, and if the market goes down and bitcoin dominance goes down. The YouTuber advised investors to consider selling some bitcoin and buying altcoins if bitcoin continues to rise and institutional money piles in.
The Cryptocurrency Market: Bullish or Bearish?
A month ago, speaking bullish about cryptocurrency would have gotten you laughed out of the room. However, the market has shifted and now if you show bearishness, you are met with the same response. As an investor, it’s important not to be irrational about the market and instead, take a step back to look at the bigger picture.
Looking at the Market
With cryptocurrency on the rise, it’s important to consider the market and how it’s behaving. For instance, we currently see FOMO setting in for some investors, and the Bitcoin fear and greed index is showing signs of greed. This is all happening while the 50 and 200 week Bitcoin charts are converging around $25,000, which is causing some investors to speculate.
Important Factors to Consider
There are three important factors to consider during this time: the FOMC meeting, big tech earnings, and whether the explosive move to the upside will occur or if we’ll fall right back down. Additionally, the excitement about altcoins is growing, and it’s important to figure out what to do moving forward.
Four Different Scenarios
Four different scenarios could occur in the market. The first is that the market goes up, and Bitcoin dominance goes up as well. The second is that the market goes up, but Bitcoin dominance goes down. The third is that the market goes down, but Bitcoin dominance goes up. And finally, the fourth is that the market goes down, and Bitcoin dominance goes down as well.
Making Sense of the Market
It’s important to understand the market dynamics, irrespective of what happens. For instance, even if Bitcoin dominance goes up in the short term, altcoins may still perform better in the long term. Therefore, it’s important to have a plan in place and know what actions to take during different scenarios.
Overall, the cryptocurrency market is set to continue to rise, and it’s important to stay level-headed during this time. Taking the time to analyze the market and make informed decisions, not blindly buying or selling, will always be the best course of action. Remember to stay vigilant and always keep a close eye on the market to make the right investment decisions.