This image illustrates what may be happening with many cryptocurrencies holders as the markets start to sells down, making a down move on almost every coin that you look at. You need to really have a strong hand to not sell at least some of your holdings as you see their value falling to the ground.
On Poloniex, one of the most known altcoin exchanges, the price of every altcoin is red, including the most famous and traded ones like ethereum, ripple, litecoin, dash, xmr and strat:
People like to say that it's a bloodbath, as huge red candles begin to be painted on the charts, but are we really on a bear market right now or is this just a correction for a bigger run? That's the one million or, i should say, several billions dollar question, isn't it?
We don't know the answer, but we can search for some signs given by the market - we have to look for the bigger picture; And there's no better way to look into it than its total market capitalization. Let's see what pattern the market cap of all cryptocurrencies (including bitcoin) is painting:
As you can see, the global crypto market cap was in a significant run up since late April until it touched 110 Billion for four times. Then, it started to fall since the end of June until it broke the main trendline recently, making a expressive down move.
Bitcoin, as the dominant crypto currency, has had a major impact in this result. The uncertainty of what will happen with it after August 1st and the doubt created by a possible split in the chain has made the price to break its neckline, just like the market cap chart. Look at the Bitstamp BTCUSD chart below and see for yourself.
If we are really in a bear market, this is a huge opportunity to make even more profits as the markets are crashing so we can buy the dip later on when people start to say that crypto is dead and they laugh at you. And always remember this picture of market cicles when fear kicks in.
I hope you enjoyed the reading and made your conclusions.
Don't follow me blindly nor any trader.
Have a good trading.