The top 10 cryptocurrencies are now showing bullish growth except for $HEX which showed up quite bearish. The big question, as of the moment is, why is $HEX down when the other cryptocurrencies are bullish?
Top 10 Cryptocurrencies
Previously, with the bearish market spreading through the top 10 cryptocurrencies, there were three currencies that remained unaffected. Stablecoins like $USDT and $USDC rarely change in value and do not always fluctuate that much. The last currency that remained unaffected by the bearish market that plagued the top 10 cryptocurrencies over the last few months is $HEX.
There is actually a reason why $HEX has shown bullish growth over the last few months despite Bitcoin and other altcoins dropping in price. As observed in the transactions seen on WhaleBot Alerts, more and more crypto whales have been pulling their capital outside Bitcoin and other altcoins and putting them into $HEX while the market remained extremely volatile.
Bitcoin Market Cycle
This movement can better be explained through the Bitcoin market cycle as seen on CryptocurrencyFacts. According to the article, there are five market stages that Bitcoin goes through and that the cycle usually repeats.
The first cycle is when hype starts building around Bitcoin when whales purchase massive amounts of cryptocurrency to position themselves well. Once the whales purchase the cryptocurrency, the market starts to move and more and more people join in to purchase their share of cryptocurrency.
Early Stages of Bitcoin Market Cycle
Once the price starts to go up, GREED kicks in. This is where more and more traders purchase more Bitcoin with belief that the price will still soar and go up. Once the price starts to reach its new ATH or all time highs, the prices start to plateau once again. Once this happens, crypto whales move once again.
Crypto whales would then start to sell their holdings and take massive profits from Bitcoins. This is where they move on to either stablecoins, withdrawing their capital, or purchase another altcoin that has potential and is mostly untapped by traders. This is where $HEX comes in.
Later Stages of Bitcoin Market Cycle
WhaleBot Alerts on Telegram showed that when the prices of the top 10 cryptocurrencies started to go down, the prices of $HEX started to go up as more and more whales sought refuge amidst the volatile market. Due to the crypto whale's exit, the prices start to fall and FEAR hits the market.
When FEAR hits the market, more and more holders lose belief and start to sell their cryptocurrency resulting in the price to go down. Crypto whales do not always buy the drop and usually wait for the cryptocurrency to plateau once again at the bottom. With the popularity of NFT games, other cryptocurrencies have also started to rise aside from just the top 10 cryptocurrencies.
Once the price plateaus at the bottom, this is when crypto whales start buying once again and thus the price of $HEX going down and other cryptocurrencies going up! This is according to observations of the transactions seen on WhaleBot Alerts.
This article is owned by Tech Times
Written by Urian B.