Resistance and support, the yang and yin of cryptocurrency trading. When old resistance becomes new support over a sustained upward trend it usually indicates the end of a bear market, so far in 2018 we have not seen a breakage in the downward pressure on Bitcoin and the cryptocurrency market and many investors have felt the pain of what a hyper-volatile market can do when it's not in a bull market.
With BTC breaking through 7.1k could this be the reversal many have been calling for? Perhaps but one should be cautious when investing at these levels, the FOMO in crypto can be dangerous and tempting, in my opinion, this may very well be the end of the downward trend (at the very least temporarily). Here are the three reasons that you should keep a close eye on the markets right now.
Selling Pressure Is Exhausted
After 9 months of pain and over 90% losses on many altcoins that emerged in 2018 the market may be at the end of the capitulation stage, when price sentiment is at its worst, markets are stale and volume is low it usually indicates that the sell side has seen its day, this could mean a temporary reversal or a sustained upward trend, in the hyper-volatile and heavily manipulated crypto market its hard to say, with development on the backend innovating and building every week we may very well be in a position where the fundamental value has finally intersected with the speculative (200 billion dollars is still a huge amount of money keep in mind.Bad News Has Been Priced In
With the denial of additional ETFs last week many were expecting another slaughtering in the markets… but what was seen was quite the opposite, double digit green on many alts over the course of a few days, when bad news correlates to upward prices, that can be a sign the worst of capitulation may be over.OTC Markets Still Popping
When checking CMC its very easy to get distracted by the day-to-day price volume of trading bots and retail investors, this represents a only a fraction of the digital currency market, and with big players loading up while the little guys (us) are down it usually means it's a good idea to follow the former.
Is the great shakening truly over? Will the bull market finally return? Tough to say, but if one keeps an eye on the markets, sticks to fundamentals and doesn’t allow emotions to clog their judgement then in the LONG TERM you will be just fine. Stay safe and steem on guys
