Investor Focus Shifts Towards “Gem Hunting” as Bitcoin Price Wanes
This lack of momentum has done little to bolster the cryptocurrency’s short-term outlook, as investors and traders have largely been turning towards trading pre-sale tokens and other short-term investments.
There are countless examples of tiny, previously unknown, tokens that have seen major hype throughout the past few days and weeks, clocking gains of 5x or more over the span of minutes.
This has sucked all the energy out of traditional altcoins that have already seen their hype cycles play out over the past few months.
One trader is noting that until Bitcoin is able to break a key range, this trend will likely persist.
Bitcoin Extends Consolidation Phase as Traders Turn Towards Altcoins
At the moment, Bitcoin and major altcoins are all stagnating, which comes as investors and traders shift their focus to the rapidly emerging Uniswap gem hunting trend.
This trend is strikingly similar to that which sparked the first DeFi bull run a few months ago, during which time traders would rush into newly listed pools in hopes of finding the next 10x or 100x coin.
Naturally, this type of trading is high risk, as there are plenty of “rug pulls” or contract exploits that can lead to the loss of funds.
The volatility and returns being generated on projects like OWL – which conducted an ICO last night – are staggering.
Trader: BTC Likely to Lack Momentum for Coming Few Days
One trader believes that this trend will continue hampering Bitcoin’s short-term outlook for the next few days, until it is able to break out of a triangle pattern it has formed.
“Another day another day within the triangle – no interest to trade it now. As mentioned earlier, putting a lot more focus on public sales and researching gems – that’s where the money is at now. Follow the money, don’t wait for it,” he said while pointing to the below chart.
Although the next few days may be quiet for Bitcoin, it is unlikely that this will last for too much longer.