With bitcoin dumping 30% so is the rest of the market. In this article I will give a brief chart analysis and discuss the current state of bitcoin. Why you should be buying the dip, and what altcoins I'm looking to buy for the next bull run.
BTC Current Price: $50,000
20 day moving average crosses below 50 day moving average on December 2nd - This signals a bearish reversal taking place, at least in the near term
Relative Strength Index (RSI) is sitting at 38 - Bitcoin is not quite oversold until the RSI touches below 30.
Next Support at 42,000 (Pivot Point on December 4th)
Lowest Support of 32,000
By the looks of the chart, bitcoin will experience some minor pain. This another great buy opportunity. The price will likely stay depressed through the end of the year. I don't see any reason why cryptocurrencies are in a bear market. Far as I am concerned, this is another healthy dip before Bitcoin hits 75,000. With how much money the United States is printing, there is no reason for Bitcoin to have a prolonged bear market. In the latest report the U.S. annual inflation rate accelerated to 6.8%. The highest its been since June of 1982. At this point, holding the U.S. dollar is equivalent to burning money. When people realize how much wealth is being lost, money will flow into other assets.
Many investors are trying to compare this bitcoin cycle to the one of 2017-2018. However, there are plenty differences that separate the two. (1) There is a massive amount of institutional money invested in Bitcoin. Seeing another 95% drop and a 3 year bear market is not going to happen with institutions buying every major dip. (2) Inflation is through the roof. People don't want to stay in cash knowing their money is quickly losing value (3) NFT's are a brand new asset class and are likely to lessen the outflow of money from crypto to fiat in the next bear cycle.
There is really no cause for alarm. Investors should be excited by this opportunity and enter projects they have high convictions in. That being said, below is a list of altcoins you should be looking to pick up during this dip:
Cardano (ADA)- IOHK is taking the long methodical approach with Cardano. Trading at $1.29 and down 56% from it's all time high. Impatient investors are being shaken out. This is a safe investment. Stake ADA and earn rewards that compound your investment every 5 days.
Polkadot (DOT)- This is an open-source sharding multichain protocol that allows cross-chain transfers of any data or asset type. This means Polkadot is built as a layer 0 protocol allowing for layer 1 protocols like Ethereum, Cardano, and Solana to operate on the same network. Trading at $27.50 now is an excellent time to buy.
Chainlink (LINK)- Is a decentralized oracle network. This network is responsible for the accurate reporting of real world data. Offering tamper proof inputs and outputs that greatly improve upon current smart contracts. Trading at $18.50 this coin is at a deep discount.
Filecoin (FIL)- is a peer to peer file storage network aiming to store humanity's most important information. Trading at $38.20 a coin and down 80% this year. With a growing user base on IPFS, interest from china, and inclusion in the Grayscale trust. This is one of the most underrated cryptocurrencies on the market.
Sandbox (SAND)- is a blockchain based virtual world allowing users, to create, build, buy and sell in the form of a videogame. This one of the best plays in the metaverse. Currently trading at $5.10 a coin. I would like to see this come down some more before entering. Nonetheless, it's a great opportunity.