The price of Bitcoin (BTC), the top-ranked cryptocurrency by market capitalization, hit the psychological barrier of $10,000 but immediately rejected. Meanwhile, the sentiment is shifting from fear towards greed as the Crypto Fear & Greed Index is now above 50 for the first time in three months.
However, altcoins have been showing weakness across the board. Investors are selling their altcoins to catch the Bitcoin train with the halving now less than three days away.
Crypto market daily performance. Source: Coin360
Bitcoin hits the psychological level of $10,000
BTC USDT 12-hour chart. Source: TradingView
Bitcoin is showing strength as the halving is approaching with the hype only increasing by the day. FOMO (fear of missing out) is increasing as well, which makes people eager to step into Bitcoin and the price to rally heavily.
However, is such a rally sustainable, or will this be another case of “buy the rumor, sell the news”? Based on the previous halving and the previous halvings of Litecoin (LTC), this is entirely possible.
People get intrigued by the hype around the event, as they expect a short-term bullish outcome to occur on the markets, and they start to buy into Bitcoin.
Where can we see that? In general, these movements can be spotted in the altcoin markets. Usually, when Bitcoin sees a big rally, people FOMO into Bitcoin. One such example is Ether (ETH).
ETH BTC 1-day chart. Source: TradingView
While the USD value of Ethereum is remaining relatively stable (as the price has been hovering between $197 and $215 in the past two weeks), the BTC pair is getting absolutely hammered.
But why? It’s because people are selling their altcoins to catch up to Bitcoin. Ether has seen a selloff of 20% in the BTC pair in the recent week, while ChainLink (LINK) and Tezos (XTZ) have seen a 30% selloff in the past ten days. Indeed, all selloffs have been seen in the BTC pair while the USD pairs have remained relatively stable.
Interestingly, previous bull market moves have…