Date: November 27, 2024
Author: Pablo Dávila S.
The Money Flow cycle plays a key role in identifying where capital is heading and which assets could benefit. Currently, data shows clear signs that we are entering Phase 2 of this cycle, a decisive moment for investors looking to maximize profits. #EarnFreeCrypto2024
Key indicators: Market dominance and extreme greed
1. Market dominance of Bitcoin: With 57.3%, Bitcoin continues to lead market confidence. However, the season index (58/100) shows that altcoins are beginning to gain relevance, which is typical at this stage of the cycle.
2. Fear and greed index: An extreme greed level of 81 suggests that bullish sentiment is at its peak, but it could also be an indicator that a short-term correction is approaching.
3. Market volume: The total volume of $258.62B, with a 505% increase, is a clear indication that fresh money is entering the crypto ecosystem.
What is Phase 2 of Money Flow?
In this phase, the money that originally flows into Bitcoin begins to shift towards large and mid-cap altcoins, such as Ethereum (ETH), Binance Coin (BNB), and Solana (SOL). This is because investors are seeking higher returns in assets with greater relative growth potential.
Analysis of major cryptocurrencies
Bitcoin (BTC): Currently at $94,551.51. Although it remains the primary store of value, its upward movement has begun to slow down.
Ethereum (ETH): At $3,624.51 and a 10% increase in the last 24 hours, it is attracting capital, thanks to its upgrades and utility in DeFi.
Solana (SOL): At $242.54, it shows a correction, but its ecosystem remains strong.
BNB and XRP: At $644.16 and $1.51, respectively, these cryptos have been consistent in attracting significant volume.
Emerging altcoins: Dogecoin and other speculative assets could shine at this stage, especially if they maintain the viral narrative.
Strategies to navigate this stage
1. Strategic diversification: Take advantage of the growth of altcoins without neglecting a backup position in BTC.
2. Volume study: Identify which altcoins are seeing a steady increase in volume, as this can be an indicator of greater institutional interest.
3. Avoid FOMO: Although sentiment is positive, do not forget that the market is cyclical and we are likely to see corrections before new highs.
To conclude...
Good things are coming. Phase 2 of the Money Flow cycle is an exciting time for crypto investors. While opportunities abound, it is also a period where discipline and technical analysis play a fundamental role. Do not forget to closely monitor market movements and carefully evaluate your decisions.
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