I don't think it's a good time to sell crypto?
Right now it's not a good time to sell my crypto as the market is in a dip and it's a better time to buy and HODL as these prices may not be available in the future. I'm not a financial advisor so this is not financial advice. I bought into the crypto space after the 2020 crash because I couldn't believe the price was so low; soon thereafter it was rising again. Read my other articles to see how I started. In this article let us look at a few of the points that are being shared in the media.
Extreme fear is the market sentiment right now
The Fear Greed index over the last few days shows a low of extreme fear, and this is when the market is most worried about the outcome. This is not a bad sign, it is just a sign to say investors are ering on the side of caution. Only the people that bought at the peak in 2013 or 2017 and HODL tight will understand that what goes down will go back up again. All markets fluctuate in a series of waves and most newcomers to investing love the growth price on the way up and are fearful on the way down. Let's look at the factors at play and understand what is going on.
Normal market movements
All market prices fluctuate and it is healthy market movements guided by sellers. On the way up investors go through various phases, while keeping to the long term mean upward trajectory. Takeoff is the best place to buy this is where the price crosses the 200 day moving average. the first sell off is where traders take profits causing the price to fall a bit, and in that dip traders buy again for the next leg up. The next take profit is another sell of point causing waves to form the pattern of peaks and lows and the market is bullish if these waves have higher and higher highs and higher lows in the daily chart view. Price corrections are necessary after ATH's as the market needs a breather before the next leg up.
Bitcoin's dominance is returning
Bitcoin’s dominance is recovering after dropping from 64% in March of 2021 to 42% due to the Alt market phase where traders move profits from Bitcoin to the Alt coin of choice causing them to rally to ATH's currently Bitcoin dominance is heading back as Bitcoin early supporters know that they need to buy the dips and prevent drastic sell off from weak sellers. This market sell-off dip is comparable to 2020 Covid-19 dip and we recovered so well from that dip.
Is the market Bearish?
For now The chart is not yet fully bearish and there is still a chance that if more FUD is used; then we may dip down to $30k again or even bounce off $25k but we should recover some market towards $60k in the near term with +$100k in the long term. We are currently in the blow off phase according to many trading experts of the below diagram. And as long as people stop panicked selling, the support resistance lines to cross and hold above now are $38k then $42.5k then $48 then $51k then $57k and the $62.5k and beyond.
How has Bitcoin performed thus far?
Just consider Bitcoin was once trading between $0.0008 to $0.08 per coin in July 2010, it mooned in 2011 from about $1 in April to $32 in June before FUD knocked it back down to $2 by November. In 2013 Bitcoin rose from $13.20 from good market news and positive sentiment and Bitcoin dipped in 2013 from the ATH of $222 during April due to FUD to around $76 before recovering to around $123 by October. The price of Bitcon again mooned to a new ATH of $1156 in December 2013 before a multi year slump with a low of $315 in the start of 2015. In 2017 the price of Bitcon rose again from around $918 to a new ATH of around $20k in December before FUD knocked it back down in the beginning of 2018. The market went sideways for the next two years hovering below $10k before the rise in December 2019, then covid hit. This bull run began from the rise out of that crash, when the world realized that crypto has stronger support than other assets.
Why professional and institutional investors aren't worried.
Professional investors research the market using charts and market analysis of the fundamentals of each project to determine the point of entry and exit. Smart traders buy low and sell high, the FOMO buy high and panic sell when the price falls. A post I read recently was from someone who bought at ATH of 2017 and HODL tight and was thankful that she did. Institutional investors have been climbing into the market and they wouldn't if they believed it was going to crash to zero, this market correction is just part of the wave pattern that markets do and will continue to do for years to come.
This bull runs FUD
SEC saying it is investigating cryptos as they are unregistered securities. SEC FUD affects Bitcoin price they are behind on regulations to guide this new asset class.
USA government saying it will charge capital gains tax on crypto investments. what caused the second fall in price no taxing on the first $10k
Tesla saying it will stop accepting Bitcoin as payment. Tesla announcement causes dip to grow And now Elon had a positive meaning with miners about sustainable energy transparency.
China saying again that it's banning crypto for the unteenth time. China FUD drops price even further. They are just saying they need to regulations in place.
Final thoughts
Consider that currently there is only 1.5% of the global financial market in crypto which over the last 10 years has been a great milestone to reach with innovative new technologies like Defi, Web3 and even insurance and travel including flights and hotel reservations, etc. now available in the crypto space. It's just the beginning, so I'm not selling my crypto, no matter what the FUD manipulators think they can throw at us. This is the first correction of five that traders are estimating so watch out for the next four FUD seasons.
Acronyms
HODL : Hold On for Dear Life, possibly the safest way to trade to not miss out
ATH : All Time High, a temporary place holder which will possibly be surpassed in the future
FUD : Fear Uncertainty and Doubt, a marketing tactic to control the market
FOMO : Fear Of Missing Out, it's not a good time to buy if you feel this
Diamond Hands : Strength to HODL no matter what, investors know
Previous articles can be found here
How to grow your Bitcoin balance
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