Investors are taking profits in Bitcoin and re-allocating to Ethereum & Litecoin. Coinbase users have three choices of cryptocurrencies, and look to be re-allocating profits as opposed to converting back to traditional currencies.
As cryptocurrencies further enter the mainstream, diversifying your holdings makes sense. Bitcoin futures begin trading on Sunday night, and with the recent run higher in the largest cryptocurrency, investors look to be re-allocating funds to other major cryptocurrency players.
For example, both Ethereum and Litecoin have seen large moves on Friday and Saturday, as much as 20% and 90% respectively. With Bitcoin looking overbought on near-term indicators, investors are diversifying into other major cryptocurrencies found on the Coinbase platform which haven’t risen as much, creating an attractive catch-up trade going forward.
The chart below is of Bitcoin on both its daily and weekly time-frames. The trend higher for the largest cryptocurrency has been explosive as its garnered mainstream attention, with a parabolic move happening as futures exchanges announced plans to launch a derivative on Bitcoin.
While the move higher has been strong for Bitcoin, a rotation into other major cryptocurrencies that trade on the Coinbase platform has been taking place on Friday and again on Saturday. Bitcoin remains in a strong long-term uptrend, but there is reason to believe other major cryptocurrencies could be on the cusp of explosive moves into 2018.
Source: Trading View, Bitcoin/U.S. Dollar Pair While Bitcoin has grabbed all of the attention recently, Ethereum and Litecoin have been building massive consolidation patterns over the last few months, with breakouts higher occurring in recent days. Read more from seekingalpha.com…
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