Bitcoin and Optimism in Bear Markets
The markets have been very red as of the past few days. We have seen the total cryptocurrency market cap rescind to just over $550 billion, losing nearly one-third of its total market capitalization in about one month. The markets have not looked this bearish in a while. Bearish markets can be categorized by declining coin and token prices, lower overall total market cap, and a disseminating feeling of pessimism from within the industry. While the recent downtrend can be described using the first two characteristics, I am of the feeling that there may be a lot of optimism in the market. My reasons are as followed:
Bitcoin saw an extremely sharp rise to $20,000. During this run, the total cryptocurrency market cap tripled, with many new investors entering the market. Bitcoin has not sniffed $20k again however, we have seen lots of consolidation around $16k, $14k, $11k. I think this is important because it has given many people the opportunity to adjust their position (get in or out), which should give Bitcoin new life for a potential bull run in 2018.
December- January generally signifies a slow time of year. Holidays and New Years is a time to be away from the office and be with family. Most frankly stated, being away from work. As we ramp up into 2018, I expect institutional players to get more active as we get over the holiday blues.
This may be the best opportunity to enter the cryptocurrency markets that we have seen in a while. Pretty much everything is down. For the seasoned cryptocurrency investor, now is a time to buy.
Using Fibonacci retracement charts to establish trends and then anticipate price movement based on key Fibonacci percentages, one can see that Bitcoin has recently bounced off a key retracement percentage (61.8%), which is indicative of a price movement upward and breakout or a price movement down to a lower supported price level.
Tune in for more cryptocurrency news and information related to the industry. I look forward to the opportunity to provide helpful information to the many cryptocurrency enthusiasts out there. If you have any comments, please leave them below.
PLease upvote and follow.
Gooddeeds
This is not financial advice. Invest at your own risk