Did traders rush to buy altcoins during the fall in Bitcoin? Look at the big funds and investors that continue to actively invest in Bitcoin. Professional traders are accumulating the current fall in Bitcoin price while retail investors are busy trading altcoins.
The same MicroStrategy, according to its representatives, buys Bitcoin during any drawdown in large quantities, but gradually, so as not to have a serious impact on the rate. Nevertheless, the price is being supported and this is perhaps the main incentive for continued growth so far.
Bitcoin (BTC) has tried to maintain the $ 55,000 support level since the liquidation of 5 billion long contracts, however, the rate fell again by 6.5% on May 4. Although the whales have been trying to buy the drop for the past 24 hours
However, it should be noted that the current correction is in a controllable range.
There are no fundamental prerequisites for the continuation of the fall today, as well as for the continuation of the sharp rise. The nature of the depreciation is absolutely technical.
Most cryptocurrencies have entered the stage of consolidation after the recent rally; one shouldn’t expect serious growth in the near future. Most likely, in the coming days we will see a series of undulating surges in the Bitcoin rate until the balance of supply and demand normalizes. Altcoins will habitually follow the market trend set by the first cryptocurrency in terms of capitalization.
If we consider a long-term investment strategy, then the current levels are quite comfortable for buying, although you can wait for the next price rollback. Market sentiment remains extremely positive despite the technical correction.
It is better to buy Bitcoin regardless of the exchange rate
Retail investors, more exposed to emotional trading decisions, have been influenced by the general market trend. Bitcoin began to decline, people in a panic began to sell coins and invest in altcoins. In general, everything was expected. Neither Bitcoin nor any other asset can only grow and generally not experience periods of correction.
Each time, the main cryptocurrency shows a rapid growth and subsequent correction. However, non-professional investors panic every time. Thus, we can see that it is common for inexperienced traders to sell assets when the price falls and buy them when it rises.
News affects altcoins and bitcoin, but not constantly, but in cycles, traders buy altcoins and sell Bitcoin and vice versa. Ultimately, their goal is to earn as much Bitcoin as possible.
In part, this speculative relationship between Bitcoin and altcoins, as well as the economic difference between them, is the reason for the difference in the cycles of the main cryptocurrency and other coins.
The comparison can also be made with the securities markets, where investors buy blockchain assets. When they sell them, they usually acquire other assets that move in the opposite direction.