Rally in BTC may provide a good opportunity for altcoins
With the continued rally in BTCUSD, likely spurred on by increasing confidence that fork-related issues will either not result or not negatively impact holders of BTC, the H&S bottom and confirmation is signaling a measured move to 3000, which I anticipate should be reached by early next week, for the reasons mentioned.
Interestingly, if you take a look at many of the other top 10 or 20 coins, including ETH, they're all headed down, 10-20% this morning coinciding with the further rally in BTC. It seems there's an outflow of these altcoins to increase holdings of BTC, due to the likely production of Bitcoin Cash (BCC or BCH), which will only be possible, to the best of my knowledge, if holding BTC in private wallets - not exchanges.
So, if this is the case, what does this imply for the future? Those BTC that flowed out will likely eventually return to the exchanges to repurchase original holdings. I would think buying strong alt coins that are weak over the weekend into Monday is a decent strategy going into August 1st. And if BCC (or BCH) turns out to be less valuable than what individuals are anticipating, expect it to again flow back to BTC and other altcoins. There's an apparent rush to obtain free money, through the acquirement of BCC (or BCH) - but given only a fraction of users will be supporting it, it seems unlikely this currency will do anything but depreciate in value over time.
In conclusion - it's difficult to determine if it's worth following the trend and trying to beat them back - as I'm long various alt currencies, I'll simply be using this as a potential add.
Interestingly, if you take a look at many of the other top 10 or 20 coins, including ETH, they're all headed down, 10-20% this morning coinciding with the further rally in BTC. It seems there's an outflow of these altcoins to increase holdings of BTC, due to the likely production of Bitcoin Cash (BCC or BCH), which will only be possible, to the best of my knowledge, if holding BTC in private wallets - not exchanges.
So, if this is the case, what does this imply for the future? Those BTC that flowed out will likely eventually return to the exchanges to repurchase original holdings. I would think buying strong alt coins that are weak over the weekend into Monday is a decent strategy going into August 1st. And if BCC (or BCH) turns out to be less valuable than what individuals are anticipating, expect it to again flow back to BTC and other altcoins. There's an apparent rush to obtain free money, through the acquirement of BCC (or BCH) - but given only a fraction of users will be supporting it, it seems unlikely this currency will do anything but depreciate in value over time.
In conclusion - it's difficult to determine if it's worth following the trend and trying to beat them back - as I'm long various alt currencies, I'll simply be using this as a potential add.