Metaverse (ETP) has shown some pretty unique attributes relative to the rest of the crypto market. In the last few months, it has been on a consistent uptrend, gaining more than 400%. In that same period, bitcoin has dropped from a high of $8600 to its current price of $6300. Clearly, Metaverse is trading independently of the price of bitcoin (BTC), unlike the rest of the altcoins market.
On the basis of this observation, an investment in Metaverse (ETP) probably makes sense at this point in time. That’s because, from the charts, bitcoin (BTC), could be headed much lower. Though charts aren’t always right, they are never that wrong either. In the weekly charts, bitcoin is in a bearish trend. The past two weeks saw bitcoin drop from $8100 to $5900, marking the beginning of a bearish trend.
This week bulls have tried to retake the market, but clearly they have been unable to do so. The week has ended in a tie between bulls and bears at $6300, which means that bears are still strongly in control of this market. Bitcoin has now formed a bearish continuation pattern (chart below), and if it holds, then bitcoin could be headed to $4800. It’s the next support level on the 100-day moving average.
If by any chance bitcoin (BTC) drops to this level, then most altcoins will be deep in the red. It could see many of them lose more than 50% off their current prices.
The only altcoin that is showing a positive momentum at this point is Metaverse. In the weekly charts, Metaverse (ETP) is in a clear bullish trend. It has been in a clear and consistent bull run for the last 7 weeks in a row as seen in the chart below.
This is an indicator that there is sustained bullish momentum in this crypto. Checking out the day charts for confirmation, it is clear that even if it corrects, it won’t be as heavy as the rest of the altcoins. This is clear in the day charts, where Metaverse (ETP) has established a strong support level at $2.23, which is quite negligible percentagewise, considering that this is a bear market, and most altcoins are down by over 90%.
Based on these charts, it is clear that Metaverse (ETP) could actually be a good bet for someone willing to take some risk, while staying relatively safe in this market.
However, in crypto things move pretty fast, so it is good to have some risk management strategies in place. For instance, if you are doing margin trading, using a low leverage can protect you from getting wiped out in case the market makes a sudden push against your trade direction. Another important risk management strategy would be to make use of a stop loss when trading. If by any chance the trade goes against you, you have a clear exist point beyond which, you get out and safeguard your capital.