The After Effects of The Crypto Market Correction - Where To From Here?

Ran says that he hasn’t seen a more violent market correction like yesterday’s since 2013. It was also reminiscent of the large red candles at the end of the 2017 bull run. Are we pulling up out of a correction back into the bull run, or is it like a 2017 dead cat bounce? Here's what the 2017 bull run dead cat bounce looked like (bounce was in January, 2018):

Sheldon notes that the whole market has bounced back for the time being. Sheldon believes we are going into a choppy market for BTC. Good tip: only trade with 5% of your portfolio until you start gaining enough market knowledge to trade a larger percentage of your holdings.

Sheldon is just going to be charting BTC since alt coins will follow - he will be buying and selling his portfolio as a whole:

• When BTC is $42-44K, he is selling BTC & alts at resistance (orange zone in pic below).
• When BTC is $35-$36K, he is buying both BTC and his favorite alts at support (green zone in pic below).

If BTC leaves the $44K mark to the upside, Sheldon is buying BTC (and alts) as resistance turns to support.

Gareth Soloway's Thoughts on the Market

Gareth Soloway correctly predicted this most recent BTC correction and joins Crypto Banter to share his thoughts.

Gareth believes that the mania around Doge coin was a warning sign of a local top for the crypto market. He also thinks that Elon’s tweets about Bitcoin’s energy inefficiency is causing many image-conscious CEOs to back away from BTC. Ran thinks that more energy-efficient blockchains like Ethereum and Cardano could be the beneficiaries of this sentiment.

Gareth thinks we bounce to around $48K-$50K before going back down short term. He says that the ultimate downside for BTC could reach as low as $20K. The neckline of the head and shoulders pattern on the daily is now forming resistance for BTC at around $48-$50k:

Long-term he is bullish on BTC, but is warning that we still have room to dive to the downside. Crypto is an asset class that ran up too quickly and too many people thought they could leverage and earn easy money. This is the “blood in the streets” moment where you have to be a buyer. Gareth has buy bids on BTC all the way down to the $20K range.

Some Consequences of This Latest Correction

Ran notes that $5 billion in stable coins entered the exchanges as the market crashed.

Soon after, approximately $5 billion worth of BTC flowed out from the exchanges. Ran says that this signals institutional investors are buying cheap coins off the backs of rekt retail investors.

Ran has some more bits of wisdom to share about getting grounded in the right projects with a higher timeframe mindset.

- This correction has been a wake up call for leveraged traders. Leveraged positions have been flushed down to lows not seen in a very long time.

- “Assets are flowing to their rightful owners”. Ran says that if you’re just a gambler, you’ll likely lose your stake sooner or later. But if you’re in crypto long-term, then you buy the corrections and stay strong in your belief that crypto is going to change the world.

- Look at communities like Cardano and Polygon. The prices of their tokens and of their related apps didn’t fall as dramatically. This indicates strong communities around these projects who are hodling with conviction.

Ran’s HODL Portfolio

The major top-10 coins that Ran is holding long term. Includes prices where Ran is an automatic buyer.

Ran’s Gems

Slightly more speculative but still with good fundamentals, these projects are more like the stock market's small cap stocks with lots of room for growth. Includes prices where Ran is an automatic buyer (SOL price is a misprint, should read $35).