The overall market continues to grind lower and bitcoin dominance has recovered some losses since the beginning of the year.
Bitcoin continues to hold the title of digital gold and a safe haven asset for cryptocurrencies when uncertainty, fear and selling start hitting the crypto markets.
Bitcoin vs The Dollar
The long term chart of bitcoin vs the dollar remains constructive on the log scale:
We may still have some downside in the coming weeks but the longer term chart is clear. This is not a random event. There are only 21 million bitcoins ever to placed into the system. Compare this with the sea of money we found ourselves in caused by central bank printing and you’ll understand why the price needs to continue going up in the long term.
Some Potential Alternative Trades
2 coins I really like and consider on my quality list are OmiseGo and Stratis. The charts also look pretty good at these levels, particularly against ethereum. Remember that I use ethereum as my base because that’s what most of my funds are currently being held in. Despite the fact that ethereum has taken a serious knock since the beginning of the year the charts suggest it should outperform bitcoin in the next 3-4 months.
OmiseGo remains a top pick for me. I like the team, I like the project and I like the technicals. The price has been trading slightly negative since September of last year but now the bullish sentiment seems to have resumed. Looking for some big gains over the next couple of months.
Stratis remains another of my favourite picks. Stratis essentially aims to provide C# solutions and applications on the blockchain. I like frameworks and architecture plays in the crypto space because they intend to provide the backbone of future crypto applications. They tend to be safer investments and theoretically should appreciate well over the longer term. It’s no surprise then that Stratis has appreciated 15 000% vs the Dollar since launch.
Technically we see a descending wedge on the strat-eth chart suggesting stratis strength over the coming weeks and months.
That’s it for now. Remain patient and lookout for those setups. Stay tuned!