Bitcoin (BTC) ETF FOMO Likely To Suppress Upcoming Altcoin Rally
The recent ETF FOMO has certainly convinced many that the correction is over and Bitcoin (BTC) is ready to take off. However the fact remains that the BTC/USD chart above is anything but bullish. The price action looks weak and Bitcoin (BTC) is resisting a pullback but it cannot hold on for long. Wave trend seems to have run into a resistance on the daily chart for Bitcoin/US Dollar and the Inverse Fischer Transform Stochastic signals a big pullback in the near future.
While it may seem like a regular pullback with no extraordinary consequences, the reality is quite different. Ever since rumors of a Bitcoin (BTC) ETF, the altcoin rally has shown signs of weakness. These signs turned into reality when a Bitcoin (BTC) short squeeze, which many took for something to do with a Bitcoin (BTC) ETF set the price of Bitcoin (BTC) soaring at the expense of an altcoin bloodbath! Short term, some altcoins like Stellar (XLM) and Cardano (ADA) demonstrated strength. However, soon afterwards it became quite clear that investors are dumping their altcoins for Bitcoin (BTC). A tweet from Charlie Lee stating that cryptocurrency investors need to “buy a whole Bitcoin (BTC) first before buying any sh*tcoins” also seems to have had significant impact on how investors traded their altcoins to buy Bitcoin (BTC) in order to capitalize on an ETF rally.