The Trend Is Your Friend.
As discussed in the previous Digest, it’s common for the crypto market to have devastating drawdowns despite the overall bullish direction.
Adequate position sizing and conviction are essential for withstanding corrections and remaining in the market when it rebounds. If your conviction was strong, the market provided an excellent opportunity to buy when there was blood on the streets.
Bitcoin is back to its pre-correction price levels, but it will need a strong push to overcome the strong psychological barrier of $20,000 to sustain the bullish momentum in the short-term. While it’s coiling in sideways, liquidity flows to altcoins, which leads to their growth.
Still, the market is just back to the starting line. Our Portfolio recovered to its pre-drop levels, but there is still much more upside potential if nothing unexpected happens.
All eyes are on Bitcoin right now. It needs to stabilize at some level before alts explode. That will be the time to start taking profits. But, until then, we remain patient.
Crypto Market Overview: Bitcoin Calms Down, Alts Pop
After last week’s short storm, the market has recovered. Bitcoin is back close to its 2017 ATH but still can’t break through it. Meanwhile, it’s dominance dropped last week, which gave room for altcoins to grow.
Bitcoin vs. altcoins market caps (USD). Source: Coin Dance.
Bitcoin dominance. Source: CoinMarketCap.
However, the breather for altcoins isn’t likely to be long-lasting. Since Bitcoin is near its previous all-time high, it needs to overcome this level in the short term to sustain the bullish momentum.
Hence, if BTC will surge over $20,000 in the coming weeks, its dominance will surge again, making altcoins suffer. Similarly, if Bitcoin doesn’t surpass its high soon, it’s likely to retrace and drag alts down. In either case, altcoins won’t have enough time to grow before BTC volatility increases sufficiently.
Overall, while SIMETRI Portfolio showed strong resilience and rebounded faster than altcoins, its performance still depends on Bitcoin. Thus, there may be another pullback before our Portfolio explodes to the upside.
SIMETRI Portfolio Surges While Altcoins Stagnate
SIMETRI Portfolio’s ROI rose to 557% from 452% last week, a level not observed since the Digest’s inception.
It shows that when money starts to flow back into alts, our Picks are prioritized as projects with strong fundamentals.
Pick of the Month ROI performance against Bitcoin and altcoins. To view live data, click on this link.
