I woke up this morning to the lovely view of BTC being above the 21K level...Wow, although it's been just 2 months since it was at that level last time, it does feel like years and even decades...
I guess that's what they call "A sight for sore eyes," isn't it?
The bullish atmosphere is starting to return again, and those who were calling BTC "dead" are back hiding in their lairs. Tongue-tied and speechless as they should always be…
Anyway, I have a little bit of ETH and BNB which I bought two weeks ago at 1200$ and 250$ respectively. So. This sounds like a good chance to take some sweet gains and enjoy some rewards of buying the dip, but this is where all the greed begins.
"Don't sell yet", "It'll go up further", "Wait a little more", "Wait for the moon"... these kinds of thoughts and emotions started to run through me as I watched all the sweet green candles on the market.
Let's face it, crypto is full of emotions, and I'm sure we all have experienced the heat of overexcitement multiple times during the past bull market. In fact, I think the ambitious and unrealistic dreams of “going instantly to the moon” is the worst enemy to the crypto industry.
Don’t get me wrong guys. I'm pretty optimistic about the long-term future of crypto, but I would be naive if I thought this particular rally would last for long.
I don’t mean to be a FUD peddler or anything, but most of the events going on around us suggest that the bear market we're in isn't over just yet.
If you’re asking for some examples, take a look at the unprecedented scrutiny the SEC is practicing against both Gemini and Genesis. Not to mention the endless SEC’s lawsuit against Ripple which has yet to be resolved. I’m not sure why they’re taking things too far, but I suspect the SEC is trying to compensate for its lack of oversight around FTX. If this is the case, then we can expect to see more enforcement actions soon…
Speaking of the F-word (no… not that word…I only mean the FTX word, lol), the new FTX team has also located 5 billion dollars of assets that they will soon be selling. Needless to say, this is something that can result in a new downward wave in the crypto market, especially if the FTX team decides that now is a good time to sell at these good prices...
Another thing that goes without saying is that covid in China is not over yet, and no one really knows how bad it would further do to the economy, inflation, supply chain disruptions, and other nice stuff...
As a cherry on top, the war in Ukraine is only going harder and more severe, killing thousands of people and rubbing much salt into the already bad wound.
Could crypto go higher in light of these conditions? Sure. As they say, markets can remain irrational for longer than anyone can imagine, and personally, I'd be glad to see it going up. However, based on the news and facts we have right now, this rally doesn't seem that sustainable. At least this is my humble opinion.
Make no mistake, markets always move in cycles and whenever a pump occurs, there must be a similar dump lurking somewhere around the corner.
So, if you were buying when everyone said cryptocurrency was dead, good for you, but please don't let those green double figures fool you. Remember to keep sticking to your investment plan. Do yourself a favor and pick up some of your sweet profits while they're down there because none of us know when the ugly bear roars back again... Forewarned is forearmed!
What do you guys think about the recent rally? How long do you think it’s going to last?
I’m keen to read your opinions and thoughts…