What altcoins are better to add to your portfolio in order to meet the bull trend prepared by? Explanation from Tokenbox analysts.
The price of Bitcoin continues to move sideways, staying in the range of $ 6100- $ 6800 for more than 2 months.
Traders’ marginal position also saw a significant reduction. According to the Bitfinex exchange, the volumes of both long and short positions with leverage are near minimum levels since the beginning of the year. Many market participants view this situation as a sign of market stabilization. However, any stabilization is only a temporary phenomenon, and sooner or later the market will proceed to the formation of the next trend.
You can recognize a new trend with the help of technical analysis tools. With regards to Bitcoin, two key scenarios are obvious. The first (negative) - the price drops below $ 6000 in the region of $ 5800- $ 5900. In this scenario, a new round of decline will begin, which will cause panic sales. The second (positive) is the price fixing above the 200-day moving average, which is currently quite close at $ 7,000. It is possible that this option is contemplated by the main majority of investors.
Waiting for the launch of the Bakkt platform and the Christmas rally forces market participants to hold and not sell assets. The fact that November this year was the first month in which there was no strong sale during the first decade illustrates this.
In this review, we also offer a look at the TOP-10 cryptocurrency market. Of the most liquid cryptocurrencies, only XRP and Stellar are currently trading above the 200-day moving average.
Thus, these cryptocurrencies boast the greatest demand. Stellar, given the news of support for the most popular wallet Blockchain.com, climbed to fifth place in terms of capitalization, beating EOS. Also, recall high risks associated with the price of Bitcoin Cash. It is likely that fork will significantly weaken the position of the asset.
It stands to reason that the further fate of BCHABC and BCHSV already clearly does not feature any competition with Bitcoin, which may just be the beneficiary of the liquidity outflow from the divided Bitcoin Cash. Litecoin can also become another winning party, again due to the transition of liquidity.
If the new bull market still should emerge this year and you are ready to meet it with a full portfolio of altcoins, then we remind you that Ethereum is the main altcoin.
All new and seemingly promising platforms for smart contracts have several key weaknesses in comparison with the brainchild of Vitalik Buterin. Ethereum is trusted, Ethereum is being developed and this blockchain is decentralized enough to remain protected. All vulnerabilities were associated only with individual smart contracts, but not with the platform itself (the core and its architecture).
By the way, on January 16, 2019, the Ethereum network expects an update to Constantinople. Also this week a technical document on further development was published, which is the Casper solution. Add to this the Ethereum-based sidechains (for example, Loom Network) and you will get excellent components of success.
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