Dear friends,
In light of recent violent volatility of cryptoassets we would like to share our short-term view on the general market trend.
Apparently, the market is in correction mode which was due as there was a violent steady rise to the new record highs in December 2017 and January 2018. Yes, we needed this correction and we got it. Experienced market traders know that the price of marketable assets drops much faster and violently than it grows (usually gradually). As usual by 2-10x factor in terms of time.
We believe that the prices of the majority of cryptoassets highly depends on the performance of 2 key benchmarks - BTC and ETH. In past, BTC was an obvious trend benchmark for the whole market, however during last 2 months the leadership is being slowly draining by ETH. It is the foundation platform for the AltCoins, and therefore has even more utility for them. As a result, the key to the cryptomarket as for now is the hands of ETH. So we should closely watch ETH price to see the trend for other assets (especially for our portfolio of cryptoassets - https://steemit.com/crypto/@p2port.com/crypto-portfolio-high-quality-crypto-assets-for-long-term-growth-created-on-11-january-2018 and https://steemit.com/crypto/@p2port.com/crypto-portfolio-modification-added-new-assets-aion-and-sonm).
This is our outlook:
Key ideas:
- ETH is currently trying to find a support at the 600 - 850 usd levels.
- Expect some consolidation + a number of attempts to rebound
- Can take 1-2 months to build the base and gather strength to recapture 1 000 - 1 300 usd
Our actions:
- HODL portfolio
- Will probably rebalance it (get more RLC)
- might consider to add some cash in March, April (will reassess the situation)
- still confident in our picks (nothing fundamentally has changed, people are taking some profits, whales manipulating and etc.)