Investor Focus Shifts Towards “Gem Hunting” as Bitcoin Price Wanes

Investor Focus Shifts Towards “Gem Hunting” as Bitcoin Price Wanes

  • The Uniswap trading trend that gained heat throughout July and August is back, but in a different form than before
  • While in previous months, traders were focused on momentum plays over a multi-week time frame, they are now trading “Uniswap gems” with a one-day or two-day investment horizon
  • This has caused plenty of small tokens to see massive, and fleeting, pumps over a shorter time frame
  • One analyst believes that this trend may be why the altcoin market in general is seeing stalling momentum, which could persist until Bitcoin makes a bigger movement

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 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.
The volatility and returns being generated on projects like OWL – which conducted an ICO last night – are staggering.
Bitcoin’s price has been stagnating as of late, trading squarely in the middle of its macro trading range between ,200 and ,200.
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.

Bitcoin Extends Consolidation Phase as Traders Turn Towards Altcoins 

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.
“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.
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.
Image Courtesy of Teddy. Chart via TradingView.

Featured image from Unsplash.
Charts from TradingView.

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.

One trader is noting that until Bitcoin is able to break a key range, this trend will likely persist.
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.

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