Exploring the current cryptocurrency market, we can find Bitcoin enjoying a six-month positive streak for the first time since 2020, raising questions about what has sparked this trend and how it could potentially shape the future.
The price of Bitcoin is on track to have 6 positive months in a row, which we haven't seen since late 2020 when Bitcoin started its final upward march in the last bull market.
Many will say it's because of the ETF, because of the halving, because of this or that, and there is no doubt that there are more parameters in the whole story, but all of this probably wouldn't have happened if we didn't have new records in traditional stock markets like the S&P 500.
Despite the current bullish trend, it is important to remember that markets operate in cycles and what goes up will eventually come down, so prudent investors should always be prepared for potential downturns.
It is clear to everyone that a correction in the traditional markets is now necessary, so that Bitcoin calms down a bit, if we want to have a "normal" bull market, otherwise if we grow too fast we could have a much shorter bull run than we are used to. I wrote about it in detail here:
A correction even if it goes all the way to the yellow dotted line (see the diagram), would not be bad either for traditional markets or for Bitcoin to cool down a bit.
In other words, it would be desirable if we end this month below 48,000 USD for the price of Bitcoin and cool down a little for the next two months, that would be very healthy for Bitcoin and our altcoins, because as you know everything that grows quickly is unstable, unsustainable and also falling fast.
It's essential to maintain a balanced perspective. While the excitement surrounding these six positive months is undeniable, caution should not be thrown aside. Remember, volatility is an inherent part of this asset class and the potential for both rapid gains and losses is significant. The journey of Bitcoin doesn't end with these six months; rather, they serve as one chapter in a longer narrative. Continue to stay informed, understand your risk tolerance, and make investment decisions based on comprehensive research rather than solely on recent trends.
And what about altcoins?
Altcoins, if Bitcoin is as stable as it is, will continue to gain attention, but as you can see, not all categories are equally interesting, so there are a lot of altcoins that have not really become popular, that is, they have made very little.
Since many altcoins are now being pushed into the AI category, because this narrative has maintained its popularity through the bear market. So, check if they really belong there or if they have been repurposed a bit after many years of representing some other category.
Altcoins also have their own narratives. The performance of particular altcoins often depends on a variety of factors including their unique use cases, market sentiment, and alignment with broader technological trends such as AI. So, while some altcoins may not have gained much traction yet, investors should not overlook them. It's crucial to research each coin's purpose and potential before investing, rather than banking solely on category hype. Just as Bitcoin is experiencing its moment in the sun, there may be lesser-known yet promising altcoins that are waiting in the wings for their turn to shine.
As the crypto market continues to mature, it's important to diversify one's portfolio and explore opportunities beyond Bitcoin, since a promising altcoin today could potentially become a major player in the future.
I hope you like this review and find value in it. Thank you for your trust.
That's all from me for today. I wish you a nice and pleasant weekend.
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Jenny ⭐
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