3 Altcoins You Should Not Buy in December 2023

3 Altcoins You Should Not Buy in December 2023


3 Altcoins You Should Not Buy in December 2023
3 Altcoins You Should Not Buy in December 2023

YEREVAN (CoinChapter.com) — The recent surge in Bitcoin (BTC) price has resonated in the wider cryptocurrency market. With the leading crypto rallying to around $45,000, several altcoins have displayed remarkable rallies of their own. Among these, BitTorrent (BTT), Avalanche (AVAX), and Beam Network (BEAM) have stood out. However, before investors rush to jump in on the opportunity to invest in them, here is why they aren’t a good buy this December. 

BitTorrent (BTT) is riding the Altcoin wave 

BitTorrent is one of the best-performing altcoins in December. Over the past month alone, BTT price has rallied over 200%, reaching a price of about $0.00000160. 

The recent rally can be attributed to a few key factors:

1. TRON’s Milestone Achievements: 

The growth of the TRON network has reflected positively on the BTT price. In early December, TRON surpassed 200 million accounts. This achievement greatly influenced BTT’s price performance. The volume of BTT has also seen a substantial increase.

Altcoins You Should Not Buy, 3 Altcoins You Should Not Buy in December 2023
Justin Sun’s tweet about Tron reaching 200 million users. Source: X

For the uninitiated, BTT is a TRC-20 token issued on the Tron Network. The Justin Sun-led company acquired BitTorrent in 2018. Hence, the recent success of the chain has also impacted the BTT price.

2. BitTorrent Saw An Oversold Bounce?

The recent surge in the price of the BTT token is also perceived by experts as its return to real evaluation. Since January 2022, the token has been considered as oversold. This is indicated by its weekly relative strength index (RSI), which had a reading below 30. 

When this happens, traders see this as a buying opportunity and invest in the token, confident that its price may surge. Moreover, the market boom experienced by several altcoins recently has also drawn investors to risky crypto assets like the BTT.  

However, despite the surge, there are reasons why you should not buy BTT this December. 

Altcoins like Avalanche (AVAX), Beam Network (BEAM) and BitTorrent (BTT) are not a good buy this December despite their recent price surge.
BitTorrent (BTT) price monthly chart. Credit: CoinStats

For one, the current RSI of the BitTorrent token shows that it is in the overbought zone. The sudden surge in interest among investors has pushed its evaluation up, giving room for profit-taking. If that happens, the BTT price will fall. 

Moreover, the significant resistance level set between January-May 2022 limits its upwards potential. This could prevent those who missed out on the recent rally to jump in on the profits. 

With the chances of bearish movements on the charts in the coming weeks, and its current evaluation reaching highs not seen in a long time, it might not be the best time to buy BitTorrent’s BTT token.

Beam Network (BEAM) has become an attractive option 

The BEAM crypto, the native token of the Beam Network, is also up on the charts. According to market data, it has surged around 50% in the past week alone. 

As of the time of writing, the BEAM price has rallied over 200% since mid-November 2023. As a result, its market capitalization has jumped above $1.56 billion. This rapid rise in value has also resulted in BEAM climbing in the ranks on CoinMarketCap. It currently sits at no 61, above known tokens like Sandbox (SAND), Axie Infinity (ASX), and Decenterland (MANA). 

Additionally, BEAM has charted a new all-time high of $0.02728 as of Dec. 14, 2023.  

Altcoins like Avalanche (AVAX), Beam Network (BEAM) and BitTorrent (BTT) are not a good buy this December despite their recent price surge.
Beam Network (BEAM) price chart. Source: CoinMarketCap

However, despite these tempting gains, there are several factors that investors should consider before investing in BEAM tokens.

1. Market Volatility and Possible Price Corrections

The recent parabolic increase in the BEAM price could be seen by investors as a sign of high market volatility. As the markets have often demonstrated, similar rapid surges usually lead to equally swift corrections. 

Those that FOMO buys the token, influenced by its recent performance, may be left bearing the losses. While it may still be a safe bet in the long run, short-term investors should avoid investing in it this December. 

2. BEAM token has a correlation problem:

 BEAM token price is dangerously correlated with a list of other cryptocurrencies. Since its inception, it has closely responded to movements in the price of Maker (MKR), IOTA (IOTA), and Bitcoin (BTC), among others. Such a close correlation suggests that BEAM’s price movements can be influenced by general market trends. This makes it unpredictable and a risky bet.

The fact that the BEAM token price could also face a scenario of profit booking is also a dangerous factor. The recent surge, one that investors have longed for, may not last. If enough investors dump their bags, new investors will be left with the consequences. 

Avalanche (AVAX) rally be be reversed 

Avalanche’s AVAX token is also among the altcoins that have outperformed investor expectations. The Total Value Locked (TVL) has also increased on the blockchain network. Moreover, Avalanche has partnered with major institutional names like JP Morgan and Citi for real-world asset tokenization using its technology.

Altcoins like Avalanche (AVAX), Beam Network (BEAM) and BitTorrent (BTT) are not a good buy this December despite their recent price surge.
Avalanche (AVAX) price chart showing its rally in the past 30 days. Source: TradingView

However, while its significant market activity may make you want to fill your bags with it, exercising caution could be a wise move. 

1. Following the AVAX price surge comes the resistance

The AVAX price has experienced a notable surge over the past month. Since October alone, it has increased around 350%. 

However, charts indicate that it has recently started encountering resistance. While the price may still surge slightly before the end of the year, one should not downplay the danger that AVAX price t may face a pullback. 

This is because a rapid increase in the price of a token is often followed by a correction. This factor makes AVAX risky, which is why one should not invest in it this December. 

2. High RSI Indicating Overbought Condition

Unlike the BTT token, which was seen as oversold, the Relative Strength Index (RSI) for AVAX is showing a different picture. It has moved upward, reaching the overbought region at 89. This is indicative of the fact that it may be overbought.

Why is that a fear factor? A high RSI often indicates that a crypto token is potentially overvalued. Hence, it comes as another reason why the AVAX price may see a correction in the coming weeks. 

One cannot ignore the fact that the AVAX token price correlates closely with major cryptocurrencies like Bitcoin (BTC). 

A possible rejection of spot Bitcoin ETF may have on the price of Bitcoin and the wider crypto market. AVAX may be one of the tokens to bear the brunt of its price. While Avalanche has shown major growth and network support, current market conditions may make backing it at this stage a risky bet. 

Hence, despite the positive market sentiments surrounding BitTorrent (BTT), Avalanche (AVAX), and Beam Network (BEAM), investors should not buy them this December. 


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