January has been a scary month for crypto investors, fuelled by a series of negative events. The Coincheck hack, collapse of Bitconnect and an investigation into Tether are legitimate concerns but the South Korean and India crackdowns have failed to materialize into our worst fears. And they may not. Governments are embracing blockchain because it can change the way we do things in so many ways by adding a level of security and they know Cryptocurrency is not going away. The point of this post was not to ramble on, but to argue the market wanted to correct and needed to. I don't pay much attention to technical analysis but looking at charts provides value by observing the long term trends.
Here's a chart of the total cryptocurrency market cap over the last year. The market had healthy growth until November when there was a broad market pump spanning two months and increasing four fold in value. I don't care what the asset is, this is unsustainable and was poised for a correction and the smallest of catalyst would provide one.
Now look at the long term trend over the past year. We're back on a healthy growth track. We're simply back to where the market would have been if it maintained its long term trend line, this is a good sign and I've seen assets follow this pattern many times.
So don't sweat it, the worst looks to be over. I'm looking forward to the steady climb from here.
G'day
source: Cryptolization