Sea of red??
Dont be disheartened by seeing sea of red this week... it is in fact expected after such a stellar alts rally in the last week of December 2017..
We see, XLM n XRP reaching all time high with news looming on how XRP is expected to be mass adopted by banks..
Since BTH hit another historic high of $20k, it plummeted back.. This cool down and stability in BTC price let a massive alts bull run..
It has been 3 weeks of BTC consolidating, with many Technical Analyst pointing out that BTC might do another run.. But somehow the expected BTC run did not arrive..
- Must understand how cryptocurrency works.. if you look btc pair, there is not so much movement.. But because eth rises it cause massive dip in alts that are paired to eth..
Why? It is simple denominator..
In simple math term...
X/Y
Y becomes bigger, after division with X it will becomes smaller.
If X becomes bigger, and Y stay the same in total it will become bigger
The same scenario, when USD strengthen USD-EURO pair increases, but EURO-USD got hit..
2.Dont be disheartened.. this is normal market movement, unlike stock market where the brokers n masses flip when you get 10% or more dip in cryptocurrency market it is normal.
That is why with the extremely volatile nature of cryptocurrency space, it become the heaven for stock n forex trader, dabbling n experimenting ..
The question now lies, is why ETH is gaining its strength? Any fundamental reason?
Do comment n start a discussion.. perhaps I will write another article on this matter.