Altcoins may be dealing with intense market pressure, but Bitcoin is not, despite the slight drop in Bitcoin's price this week. Taking the price drop as a sign that the bull run is over may not be as beneficial as it currently appears, based on new data on the chain saying otherwise.
CryptoQuant, a leading on-chain data platform, has released a new dataset in which a “buy on the dip” signal indicates that Bitcoin is in a strong buy zone.
The whales have trampled the market, sending the flow of exchange at astronomical levels. Usually this could prompt a bear market, but in the long run the charts can play in favor of those who don't care during this period.
The $ BTC buy-the-dip indicator says we're still in a strong buy zone.
View Chart 👇https: //t.co/NEBSp0GFbs pic.twitter.com/38OcQtXjrU
– Ki Young Ju 주기영 (@ki_young_ju) November 10, 2020
Part of the data reports that: "Ironically, in the long-term trend, the average exchange inflow could be a buy indicator." In addition, the CEO of the firm added that "After the drop in prices, there have been subsequent whale trading entries for two reasons." He went on to say that “First, in the bull market: sell it to the local maximum. They sell when retail investors are active on exchanges. Second, in the bear market: sell it if the unusual scary sell occurs ".
The long-term market trend will be worth looking at for two reasons; More than 1.25 Bitcoin whales are active on the exchange, and the presence of whales below 1.25 Bitcoin is also proof that small retail investors are also active on the exchange.
Meanwhile, traders still perceive that going “long – long” on Bitcoin at this point is as much a bet as to sell, as it is not known whether the market will turn into a bull or bear market; They are correct. Even when technical indicators point to a positive path, fundamental factors can still rewrite the next trend move. A greater risk is the fact that the close of the year is welcoming new network updates in other systems, and the effects of these integrations within the market can have a significant impact on the trend pattern of Bitcoin.
For investors who still prioritize the rewards of the market and aim to keep losses to a minimum, this operator proposes a suitable option.
“If you're enjoying those relief rallies (or massive breakouts) in altcoins,
I will be happy to give you the advice to profit.
You do not have to go out completely, you can also take temporary profits.
Something that people tend to forget ”.
Disclaimer: The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Crypto Report. No information you read on Cryptoinformation.com should be considered investment advice. Every investment and business move involves risk, you should always do your own research before making any investment decision.