The stock market has had an impressive run for the past year or so, with what looks like an exponential growth over this booming period (not anything like bitcoin of course but still very impressive nonetheless!)
It is exactly this observation that leads many to believe that it is about time that a reversal or a correction if you will, is on its way. But don’t take my word for it, look at how the market responded recently:
The two trend lines on the daily chart show support and resistance converging towards a central point indicating that it is stabilizing currently in a non-trending market. This is a definite sign that the market is starting to weaken and transition possibly into a correction period. Of course, during this period there were two massive bombs dropped: one being the rising interest rate and two being the newly proposed tariffs on aluminum and steel. Despite the cause of the apparent change in market direction being these two sources, they could be the catalyst for the inevitable reversal.
So what does this have to do with crypto? Much like how people flock to gold during times of market despair, people could inevitably flock to this market as well since many regard this sector as “digital gold”. Further, crypto has been experiencing a downtrend of its own (surprise surprise) for the entirety of 2018, dropping from a peak of over 19k to just under 6k, making it a fairly attractive buy for investors especially since peak exposure was essentially reached late 2017 with everyone now knowing this not-so-hidden market.
Of course, this strategy is if anything, something to look out for in the short term but this could a profitable venture during the coming storm.
Happy Trading!