Bitcoin has had a nice run back to the upside in recent trade, and seems to have its sights set on the 10k level. The question likely being pondered by longs right now is: is the rally legit or is it simply a bull trap?
The answer to that question remains unclear, but a swift move to 10k or above may put investors at ease. Given the currency’s recent volatility, there has been more discussion about diversification recently, and why it may make sense to add other currencies in addition to Bitcoin.
A recent article from forbes.com highlighted the need for currency diversification. The article stated:
“Investors looking to venture into the cryptocurrency market may want to set their sights on buying alternative crypto assets as opposed to just buying Bitcoin. Bitcoin is coming off of an all-time high of just under $20,000 and currently trades at a price of $8,200. Should Bitcoin return to its previous all-time highs, investors that purchase today will receive an ROI of 140%. That’s not bad if you’re comparing this return to the average returns in the equities market, for example.
But there are many other crypto assets that have the potential for greater ROI should they return back to their original all-time highs. Investors may want to take a closer look at Ripple’s XRP, a blockchain solution that has the potential to revolutionize the banking system as we know it. Currently trading close to $0.70 coming off on an all-time high of just over $3.30, XRP has the potential to gift investors with a whopping 300% return, if the asset makes its way back to its peak. It’s very well possible!”
Bitcoin: This crypto has been trending higher and the bulls may have their sights set on the 10k level. Trade at or above this level would represent a vindication of sorts for the bulls, and could potentially pave the way for a return to previous all-time highs. Such a climb may, however, be at a slower pace this time around. That could be a good thing, however, as the market may not appear to be as “bubbly” as it did previously.
Bitcoin Cash: Bitcoin Cash is up over 12% in early action Friday, and looks poised to end the week on a high note. The market has shown some strong bullishness this week, making a rapid move from around the $800 level to nearly the $1100 level.
Ethereum: This crypto has also been moving higher as buyers seem to be excited once again. The currency has covered nearly $100 to the upside in recent days, and a strong finish to the trading week could set the stage for further gains next week.
Ethereum Classic: The classic has been seeing some upside as well, but thus far the bulls have not been able to put together an exciting rally. The market has traded mostly between the $14 and $20 levels, without any sharp moves higher. That being said, however, the market does look like it could be forming a rounding bottom on the longer-term charts. A nice pop in volume or a big sector-move higher could potentially see a nice bullish breakout.
Litecoin: This crypto looks ready to end the week on a high note as well, and is challenging the $150 level. Like some other cryptos, this currency has not been able to mount a very convincing rally in recent months. The bigger charts do, however, show what could be considered bottoming action. This could lead to higher prices in the weeks and months ahead.
Ripple: This crypto is up almost 17% in early action on Friday, and appears headed for a very nice finish to the trading week. Granted the currency is still trading for less than $1.00, but recent price action looks bullish. A strong move above the $1.00 level could attract a lot more buying attention.
The past week has been a big win for most cryptos, and could point to higher prices in the sessions ahead. You could make the argument that perhaps, at this point, the cryptos have worked out much of the “froth” that was seen previously. This could potentially point to a slower, yet more sustainable move higher in price.
Price action in Bitcoin and other key currencies next week could provide some important clues as to whether or not the recent upside is sustainable.