Cryptocurrency markets have been in a downtrend for about 100 days. As expected during the BTC pullback, altcoins took a huge hit while Bitcoin was trading 43% below its peak.
While major altcoins such as Ethereum are trading 50% away from their peak, we see that the picture in other altcoins is much worse.
While many altcoins are trading 80% away from their peaks, investors who are waiting at a loss are hesitant to add at these levels to take more profits in the next rise.
Shall We Add?
At this point, Bitcoin’s major supports should be followed to add to the HODLed altcoins, which are trusted for their future and are at a loss.
We have experienced in the previous bear markets that the approach of “this is too low, it hasn’t dropped yet” did not yield successful results by looking only at the chart of altcoins.
At this point, we will talk about a simple data that investors can follow.
- Bitcoin’s 200-week moving average
Historically, the end of bear markets in Bitcoin passes through the 200-week moving average levels.
In case we encounter a similar picture, we think that Bitcoin can be added to the altcoins that are believed to come from these levels and are kept at a loss, while waiting for the price to touch the 200-week moving average.
The 200-week moving average, which is currently crossing the $20,000 levels, continues to rise.
*Not Investment Advice.