The crypto markets pulled back over the weekend, presenting those who haven’t yet climbed aboard the 2020 train the last chance to do so. Those who have experience of crypto markets will recognize this pullback as nothing more than a natural cooling off after a spicy February, but with the fundamentals still in place and Bitcoin still in its bullish uptrend, there is nothing to worry about.
Bitcoin Erases a Week of Gains
Bitcoin dropped $600 over the weekend, just $100 short of our prediction last week, erasing the last weeks’ worth of gains and emphasizing why it’s vital to take profits on the way up. Bitcoin still remains in the bullish pitchfork, suggesting that this is a textbook pullback before a continuation:
Let’s not forget that the bullish fundamentals are still in place and that the last bull run in 2017 saw several pullbacks, including some of up to 50%, so this is absolutely nothing to worry about on a higher time frame.
On a lower time frame, we could very well be in for a period of ‘chop’, where price ranges around the $9,700 area for some time before making a definite move in either direction. We wouldn’t recommend trading these moves and would suggest its best to wait the market out until Bitcoin works out exactly what it’s doing, as it still has control over the market at large.
Alts Lose Dominance
Almost all alts suffered along with Bitcoin, with the two Bitcoin forks in particular performing badly – Bitcoin Cash dropped 22% while Bitcoin SV fell 30%. This was reflected in Bitcoin’s dominance which jumped from 62% to 65.5% following the crash, the first time it has risen in any form since February 1, showing just how much alts have gained in that time:
One winner in the blood was FTT, a token that has been bucking the trend of recent days and climbing where others have been falling, before experiencing an extraordinary 42% jump in half an hour. This was of course an anomaly, but it just goes to show that such oddities can and do happen in a bull market.
In short, our advice would be simple…