Accumulate The Best Crypto
Following an intense market sell-off, cryptocurrencies have been rebounding strongly recently. Bitcoin Dominance hit a short-term resistance and, as expected, started to pull back lower. That allowed Altcoins to experience a broad relief rally. Offloading part of the allocation in Altcoins during the market drop added value to the portfolio last week. Now it could be time to buy back and accumulate the best crypto that can have more upside potentials.
Altcoins are back
Altcoins have been on a wild ride since the start of the year, reflecting in the Bitcoin Dominance collapsing to values not seen since 2018. As Bitcoin seems to have found its short-term bottom, investors and traders have started to buy back the coins sold during the market crash. Thus, this is an opportunity to accumulate the best crypto with higher upside potential.
How much upside potential do Altcoins have? They could reach back the pre-dump levels making new all-time highs. But as market conditions are still very volatile and the crash severely affected many traders, it’s safe to assume that the market will present new shakeouts to stress test market participants.
Looking at the total market capitalization of Altcoins, excluding Bitcoin, the upside potential was around 40% before hitting the first significant resistance. Thus, at the moment of writing, there is, on average, still 20% of the potential uptrend to reach.
So how to take advantage of this setup?
Instead of rushing into FOMO buying, you can build an automated strategy to accumulate the best-performing coins in your portfolio. Once, that coin has a price increase of 20% from the entry price, the bot sells closes part of the trade. This approach allows you to take profit from the relief rally after the strong crypto sell-off.
This bot accumulates the best crypto coins in your wallet according to 24-hr rolling price performance. Coinrule uses data from Coingecko for this indicator.
By adjusting the percentage of coins to sell in each order, you will increase or decrease the amount of coins to accumulate with this strategy.
This is a simple yet effective approach that allows you to gradually increase the exposure to coins with high potentials. The advantage of this strategy is that it’s going to accumulate only the best crypto you already own in your portfolio, preventing you from buying undesired coins.