Why Altcoins Are not Performing

There are two major reasons for this:

1️⃣ Bitcoin is very volatile.

We see a sudden move from $66k to $69k, a total $3000 pump, and then back to the $66k level.

The market is volatile; altcoins perform when BTC remains stable or pumps.

This is due to the Bitcoin halving event, which will take place in 14 days.

2️⃣ The second major reason is Bitcoin dominance.

Major money is flowing into Bitcoin due to the halving event.

Here, altcoins are not performing as expected because Bitcoin dominance is increasing.

Once the halving is finished, money will flow to altcoins.

Til then Trade Wisely🤞
#TradeNTell #BTCMove #Marketanalysis #Alts

#Write2earn
Bitcoin Price Dips to $63,500 Amid Fed Rate News
#Bitcoin #BTC #Marketanalysis $BTC

The Bitcoin price fell to $63,500 as the Federal Reserve announced that interest rates would stay the same. However, future rate cuts are being signaled, and the stock market surged on this news. Are the signs there that Bitcoin is about to follow suit?

Market Noise vs. Bitcoin's Potential

Understanding Market Noise
The market is full of noise. Will the Fed signal future rate cuts (it did)? How much of the Mt. Gox Bitcoin will be sold? Will the US government sell more Silk Road Bitcoin? Are Bitcoin whales stacking (they are)? Is Bitcoin going to be rejected from the $70,000 level again?

Bitcoin's Bull Market Continues
Bitcoin's Resilience
Bitcoin’s price fluctuates – it goes up, down, and sideways. But what is Bitcoin really? For those who understand its potential, all this noise is just background. Bitcoin is in a bull market and is likely to keep rising until the bull trend is invalidated.

$BTC Correction Stabilizes

Short-Term Trends
Recently, Bitcoin’s price fell over the last few days. However, this small correction seems to have stabilized. Bitcoin didn't hit a lower low. Instead, it bounced back from the 0.382 Fibonacci level. Positive market sentiment and reset momentum indicators suggest Bitcoin might return to the bull flag's upper trend line.

Inverse Head and Shoulders Pattern

Long-Term View
Looking at the daily chart, we see the full bull flag and the confluence of Fibonacci levels with Bitcoin's price. If the price bounces from the 0.382 level, it’s a bullish sign. Bitcoin could then break out of the bull flag. However, if the price drops from its current level or the bull flag’s top, an inverse head and shoulders pattern might form, with the right shoulder at $60,000 or even $57,000.

Increased Liquidity and Bitcoin's Future
Bitcoin Thriving on Liquidity
Central banks, including the Federal Reserve, will need to cut rates to inject liquidity into the markets or risk economic collapse.

Examining Ethereum's synthetic dollar project ENA: A potential "big short" alternative amidst the bullish market?"
Ethena, the Ethereum stablecoin synthetic dollar project launched on Binance Launchpool, has garnered significant attention with over $1.5 billion in assets accumulated within three months of its inception. This surge in popularity underscores the market's high expectations. However, recent events, like the Luna crash, have cast doubt on the notion of a "calculated stable" asset.

In the realm of cryptocurrency, innovative on-chain stablecoin projects like Ethena hold intrinsic value by reducing reliance on traditional banking systems for transactions between fiat currencies and digital assets. This aligns with Satoshi Nakamoto's original vision for Bitcoin—to create a financial system independent of traditional institutions.

Ethena achieves this goal by using ETH as its underlying asset. Users can mint USDe stablecoins by depositing stETH assets into the protocol. To maintain stability around $1, the platform employs a hedging mechanism involving perpetual contract positions—a concept familiar to individualusers.

To mitigate risks and ensure continued benefits, Ethena employs various strategies:

Depositing stETH into custody platforms to avoid liquidity risks.
Utilizing staked assets in the Ethereum POS consensus system for additional returns.
Leveraging contract position transactions on derivatives platforms for potential gains.
Adjusting trading strategies based on market conditions to maximize profits.
Despite these strategies, inherent risks persist:

Security and stability risks associated with staking.
Potential losses from strategic errors in perpetual contract trading or misjudgments of stablecoin supply and demand.
Risks related to contract transaction funding rates.
Potential liquidation risks from price breakdowns when using stETH.
Ethena's philosophy revolves around meeting the strong demand for stablecoinsin the crypto market. Its popularity and growth.
#Stablecoins #Ethena! #RiskManagementRocks #trading #Marketanalysis