Why the Crypto Market Might BLOW UP Again Soon!
The stock market has had an impressive run for the past year or so, with what looks like an exponential growth over this booming period (not anything like bitcoin of course but still very impressive nonetheless!)
It is exactly this observation that leads many to believe that it is about time that a reversal or a correction if you will, is on its way. But don’t take my word for it, look at how the market responded recently:
The two trend lines on the daily chart show support and resistance converging towards a central point indicating that it is stabilizing currently in a non-trending market. This is a definite sign that the market is starting to weaken and transition possibly into a correction period. Of course, during this period there were two massive bombs dropped: one being the rising interest rate and two being the newly proposed tariffs on aluminum and steel. Despite the cause of the apparent change in market direction being these two sources, they could be the catalyst for the inevitable reversal.
So what does this have to do with crypto? Much like how people flock to gold during times of market despair, people could inevitably flock to this market as well since many regard this sector as “digital gold”. Further, crypto has been experiencing a downtrend of its own (surprise surprise) for the entirety of 2018, dropping from a peak of over 19k to just under 6k, making it a fairly attractive buy for investors especially since peak exposure was essentially reached late 2017 with everyone now knowing this not-so-hidden market.
Of course, this strategy is if anything, something to look out for in the short term but this could a profitable venture during the coming storm.
Happy Trading!
Cryptos are very speculative, and are more like paper assets than anything. Though there are a finite amount of bitcoin and other cryptos, there are also a finite amount of shares in the stock market. It would be nice to see cryptos do well as the stock market goes down, much like the metals could. Unfortunately, if investors are no longer willing to risk their money in the stock market, I speculate that they may not be wanting to risk their money into cryptocurrency either. Perhaps cryptos suffer along with the market like silver will as gold holds it's own, then cryptos and silver explode in price after falling for a while. Who knows. Let's see what they whales do with their money.
Agreed, which is why I probably should have emphasized the word "may" more. This is just one possible route of many logical ones that may occur.
It is hard to picture what psychology will come alive during a recession or deflation.
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Hopefully Bitcoin stays strong I just began my portfolio challenge! Check it out: https://steemit.com/crypto/@pyrrhic7/can-a-newbie-dump-eur3000-into-the-bear-market-and-survive
I think I can agree with you. Thank you.
I wish it will truly be as you've put it. I get scared looking g at my portfolio these days.
The largest drop bitcoin had these over the years was 97% before it bounced back up. This is a fully unpredictable market, just hang on for now if not for the long term definitely
Thanks @wagnerxd
It's the only thing I can do for now. If it had dropped by 97 percent once, then there's hope. When did that occur please?
Beginning of 2014
market make me very sad