Bitcoin is down about 5% year to date, with a loss of $3,500 year to date. On the other hand, some altcoins fell by more than 10%. With $BTC potentially holding at these levels, is now the time to buy the altcoin you’ve been wanting to buy for a long time?
The day is getting better for $BTC
That day will probably seem less bad than you previously imagined. From Friday’s high of $72,250 to its low of $65,550, Bitcoin fell a total of 9%, equivalent to nearly $7,000.
However, as the day progressed, the support at $65,550 held and the price reversed back above the support at $68,000 and another nice long wick began to develop below.
Has another wick fallen?
Source: CoinGecko/TradingView
The theory is that this is just another in a series of wicks for the decline in the price of $BTC. If the price follows the same pattern, this would be the fourth decline in the last 11 days. All previous wicks were immediately repurchased.
Many altcoins in good buying zones
If this is true, buying some of the best altcoins with the highest upside potential could be a very decent play. At press time, Solana (SOL) is already back in the green. Currently the biggest mover, $SOL is leading the pack of most altcoins.
Most major altcoins have already improved from price declines of more than 10% and are now reversing course. Another factor to consider is that the stochastic Relative Strength Indicator (RSI) has completely reset in the short and medium term, so many may start to regain momentum.
Filecoin (FIL) is a powerful move
Source: CoinGecko/TradingView
A good example of this is Filecoin (FIL). The stochastic RSI for 4-hour, 8-hour, 12-hour and daily are all in oversold territory. The price maintained its upward trend and bounced back nicely. We can probably expect more upside from here. Many other major altcoins are in similar positions.
However, traders must be aware that the market can always do the unexpected. Appropriate risk management should be adopted, including suspensions set at appropriate levels. Trade safely.
Disclaimer: This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.