Cryptocurrency’s Perilous Position

The entire crypto market has been consolidating after hitting a high-water market in mid-March. After a scorching-hot run that kicked off in the fall of 2023 and ran into early 2024, it’s not surprising that we’re seeing a prolonged slowdown at this point.

The unprecedented runup saw Bitcoin (BTC) reach an all-time high before the halving for the first time. We’re now seeing a longer-than-average consolidation.

Should we be worried, or should we be preparing for what comes next?

The cryptocurrency market is currently navigating a tricky position, with Bitcoin and most major cryptocurrencies teetering between an uptrend and a neutral trend.

As of today, Bitcoin sits right above the crucial threshold of $65,000 — a pivotal point that will determine the market’s short-term trajectory.

Should crypto prices dip lower in the next few days, we could see a continuation of a neutral or slightly downward trend throughout the summer months.

This potential stagnation would push back the anticipated next leg of the bull market until the fall. That would prove to be a test of patience for many investors who have been eagerly awaiting the next bullish leg.

Regardless of whether or not the market continues to dip in the short term, the medium- and long-term outlooks remain the same.

Instead of targeting August for the start of the next leg of the bull market, we would simply push that back to about September or October. The fall has historically been the best time of the year for Bitcoin gains. This year should be no different.

Despite this short-term uncertainty, it’s essential to remember that the long-term outlook for Bitcoin and the broader crypto market remains bullish. The market dynamics may delay the next surge, but the underlying fundamentals that drive cryptocurrency adoption and value continue to strengthen.

Altcoin Opportunities

In the interim, the current market conditions have opened up numerous opportunities in altcoin prices.

Altcoins are high-beta plays on the cryptocurrency industry. When Bitcoin rallies, altcoins rally harder, and when BTC dips, altcoins fall even lower.

That’s just the way things are, so there’s no need to worry about why altcoins are down compared to Bitcoin right now. Savvy investors can capitalize on these lower prices to position themselves for future gains once the market resumes its upward momentum.

It’s still a bit too early to make any plays in the altcoin market. Buying altcoins now would be like catching a falling knife — something we have no intention of doing.

That said, we can already see that there will be some amazing value opportunities available to us in the coming days/weeks. Many altcoins have already broken below their May 1 lows — or are very close to doing so.

Take a look at Render (RNDR) one of the hottest artificial intelligence (AI) projects of the year. Render is a decentralized physical infrastructure (DePin) project. DePin has been the hottest sub-sector of AI, which has been the hottest sector of the crypto market in 2024.

RNDR hit a high of just over $13.50 in March after starting the year at about $4.75. RNDR tumbled down to a low of just about $7.25 daily close on May 1. It is now trading at about $8.40.

RNDR already looks to be at a steep discount from its March levels but could offer even better value in the weeks to come.

Buying altcoins at these levels isn’t for the faint of heart. It takes conviction and patience to wait it out in these riskier investments.

However, all of the biggest and best trades in crypto start the same way: buying a risky asset when everyone else is trying to sell and then waiting for an agonizingly long time before quickly seeing your position shoot into massive profit.

As we approach this critical juncture, it’s crucial for investors to stay calm and maintain a long-term perspective. While short-term fluctuations can be frustrating, they do not alter the overall positive trajectory of the cryptocurrency market. Patience and strategic positioning during these times can yield significant rewards once the bull market regains its momentum.

It’s not always green candles and fun times when it comes to investing in cryptocurrencies. The best investors have to know when to make the hard decisions and when to sit on their hands. Right now we’re going to need to do a little bit of both.

Editor’s Note: Crypto is making ordinary investors rich, and it also serves as an inflation hedge. But you need to make your move now before the next leg-up in the crypto bull market of 2024. Every day you wait is literally costing you thousands in profits.

If you’re worried you can’t figure out crypto… don’t be. Our in-house crypto expert, Alex Benfield, will walk you through everything you need to know about crypto, step by step.

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