Classic Short Sqeeze?
Caveat: I am a big time BTC bull!
However,the trade action here smells of a classic short squeeze. That statement is somewhat problematic since shorting BTC isn't easy on a large scale. But the "missing out" factor is an equally important driver in cryptocurrencies, which classically sucks in retail investors. This current move in BTC continues to lack support from the rest of the complex, even several of the more important up and coming coins, like BNB and LTC. I have also noticed that during this current consolidation phase some lessor tokens are taking a well deserved beating (look at FUN for example), which may be flushing dead money out of some ERC20 tokens going nowhere back into BTC. This theory is supported by the lack of follow through in total market cap of all cryptocurrency excluding BTC which is falling relative to BTC (i.e. BTC dominance has exploded). BTC dominance is now back at the 2018 highs of BTC! The result of this is that either BTC is now taking on a new position in cryptocurrency land (which seems unlikely) or there is an unseen force driving aggressive purchases on low volume of BTC. We think its the later and it feels like a "missing out rally" probably driven by asset allocations out of cheap tokens/coins. This doesn't mean that the price will fall soon, but it does suggest investing in LTC, BNB, BCH, BSV and maybe EOS. We recommend staying clear of XRP and ETH, both or which are in serous risk of losing their coveted 2/3 place in market cap. Ultimately we think that the BTC dominance ratio must fall and some sort of catch will occur by the up and coming coins so if you must invest now, use this as a buying opportunity for other coins and wait to make the shift to BTC once the ratio begins to normalize.
However,the trade action here smells of a classic short squeeze. That statement is somewhat problematic since shorting BTC isn't easy on a large scale. But the "missing out" factor is an equally important driver in cryptocurrencies, which classically sucks in retail investors. This current move in BTC continues to lack support from the rest of the complex, even several of the more important up and coming coins, like BNB and LTC. I have also noticed that during this current consolidation phase some lessor tokens are taking a well deserved beating (look at FUN for example), which may be flushing dead money out of some ERC20 tokens going nowhere back into BTC. This theory is supported by the lack of follow through in total market cap of all cryptocurrency excluding BTC which is falling relative to BTC (i.e. BTC dominance has exploded). BTC dominance is now back at the 2018 highs of BTC! The result of this is that either BTC is now taking on a new position in cryptocurrency land (which seems unlikely) or there is an unseen force driving aggressive purchases on low volume of BTC. We think its the later and it feels like a "missing out rally" probably driven by asset allocations out of cheap tokens/coins. This doesn't mean that the price will fall soon, but it does suggest investing in LTC, BNB, BCH, BSV and maybe EOS. We recommend staying clear of XRP and ETH, both or which are in serous risk of losing their coveted 2/3 place in market cap. Ultimately we think that the BTC dominance ratio must fall and some sort of catch will occur by the up and coming coins so if you must invest now, use this as a buying opportunity for other coins and wait to make the shift to BTC once the ratio begins to normalize.
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