Katie bar the door! Its a raging BEAR!
Yesterday, while doing my first thing in the morning look at the crypto market and charts, I just put my head in my hands and moaned and finally admitted to myself that Crypto Currency is in a bear market. A roaring bear market at that.
And I wailed a bit. And gnashed my teeth. And pined for those happy carefree days in January when I got my Coinbase and Binance account and was going to invest my way into a better tomorrow.
I hadn’t really been willing to consider anything other then we had made a crash bottom and it was up, up, up from here, albeit rather slowly. But after the last few weeks action I have to admit to myself that, best case, all things crypto could mostly grind sideways at these low levels for some months in a post crash bear market. At worst prices could go lower. Lots lower.
During a bull market, bad new means buy! Good news means buy! During a bear market, if the news is bad, SELL! If the news is good, SELL. The last few weeks it wasn’t just FUD that drove the market down it was any news at all was ample reason to sell. That’s really bearish.
A lot of folks who bought in at the top have taken a loss and left the market or are trapped and are nervously waiting until they can get their money out. Or they have a sell point in mind (or on order) where they won’t lose too much and when the market hits that, they are out of here. This is one of the actions that causes the move back from the crash lows to be a 3 steps forward, 2.5 steps backwards kind of painful grind.
I have a couple tokens I bought at what I thought was a pull back low, which now have gone down a whole ‘nother 70%. One of them I will hold till I am back in the money, another, as soon as I am only losing 20%, I am out, because I HAVE LOST CONFIDNCE IN THAT PARTICULAR PROJECT GOING FORWARD. And this is one of the widespread problems, lost confidence. This keeps buyers away from the market.
In a bull market, risk and safety is put to the back of the mind in the belief profit forthcoming. Greed outweighs fear. In a market when safety and risk become a mainstage issue, the psychology has turned bearish and fear is the primary driver and any little thing spooks the herd and they hit that sell button.
I am no expert, but it seems that markets turn around when one group or the other is exhausted and throws in the towel. Sellers become exhausted and the path of least resistence is up. Buyers are scared and exhausted and the path of least resistence is down.
Here is what I am going to do. Wait. Actually there isn’t much more I can do as I am trapped underwater on too many fronts. I have bought a few things (Steem and SBD) on down days. Buy low, sell high has not been revoked and when people are selling is the best time to buy.
Since I don’t have a lot of cash to take advantage of bear market prices, frustratedly all I can do is wait for this to pass.
The market is going to do what the market is going to do. One more good moan and a little gnashing of teeth and a wail or two and I am good, ready to start my day. There I feel better already.