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.
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Gooddeeds
This is not financial advice. Invest at your own risk