Thoughts on the CryptoMarket
For the past several days we have continuous drops in the market. Did you know that Ethereum lost over 50% of its value in just 5 days. Cryptomarkets are extremely volatile and there is no guarantee that we will be going up tomorrow.
My thoughts on the cryptomarket are that we are entering into a bear market. The recent price action shows that not only are we dropping hard but the fact of the matter is that people are now cashing out of this amazing run we had for the past several months.
I believe that the cryptomarket is in a correction mode called the distribution phase where we have to correct off the current bull market that started around Dec-Jan 17. With bitcoin and Ethereum have risen over 100% in just a span of months it reasonable to conclude that a correction is in order.
A bear market is defined as one where there are double digit declines in the price of a coin and the rallies are usually met with selling pressure. In addition it also means that the general trend is down as most people are selling off. The lack of buyers along with increase selling pressure creates a situation where people begin selling creating what we now know as a negative feedback loop.
Predictions
For the next several weeks we will most likely see price declines as the market begins to work off what we call the "Decline" Phase. Most coins will rally, but as the rally begins to exhaust all major buyers we will then resume the downtrend. I expect that bitcoin will not only drop in price to $800 or so, but will also have a situation where we will begin to get very cheap altcoins.
Make no mistake this market will continue to experience major declines and as a result if you are an investor that just go started, you need to think about how this will affect you.
In the video below I describe in detail my analysis!
