The cryptocurrency market has been moving in a troubling trend lately. Bitcoin's performance has got me in suspense, with predictions saying that it may go below $70,000 anytime soon. I have noted that altcoins are performing even worse today than during the previous bear market. That was not something I had to see at all, given the very auspicious start the year had made.
Bitcoin was hogging the headlines at the start of this year. I watched it hit milestone after milestone, and all was well. The momentum was terrific, institutional players were pouring in, and the approval of the ETF had everyone believing we were heading to the moon. But this dump caught me completely off guard. I have nothing to buy anything with right now because I don't hold any stable coins in my wallet. It hurts seeing these prices drop without being able to capitalize on them. The worst timing possible - all my capital is already committed into positions that are now in the hole.
What really gets me is how significant events that ought to have pumped the market have instead had the opposite effect. Take the case of Donald Trump's declaration of a crypto reserve and the crypto summit - these were supposed to be gigantic triggers for a market boom. Instead, we see the opposite reaction. It's like the market is going out of its way to do the complete opposite of what everyone expects. These kinds of events are supposed to push prices sky-high, but now they seem to add more selling pressure.
This is similar to being in a game of chess where I'm completely cornered - check and mate. All I can do is hang on and observe. The market needs a complete reset, and that will only happen when we start to see some genuine bull market signals again. I was surprised at the start of the year with all those positive signs, but now it's 180 degrees turn, and this fall just won't let up. The volatility has been relentless, and every rebound just gets sold harder than the last one.
It's getting increasingly difficult to gaze at the charts. A new low every morning, and every day the market's mood is turning increasingly bearish. That euphoria in the first half of this year is almost gone now, replaced with uncertainty and fear. Even my most bullish disciples are starting to sound nervous.
The crypto market today is not even close to what I foresaw when I was making my prophecies last year. My outlook is negative, but I hope I'm wrong about this one. I believe there's an even bigger dump in the works, and Bitcoin can just as easily hit $50,000 at any time. When this happens, I've learned to ready myself mentally for something worse - it often manifests like a nightmare. The market tends to try everyone's willpower, and that's currently what it's doing.
The technicals I usually have faith in are all flashing red. Support levels that seemed solid are breaking one after another. The market structure that was so lovely in January has completely reversed. Even the ancient market correlation is not assisting - everything is moving in the opposite direction.
Watching my asset prices drop is already such a nightmare. Each price notification brings more misery to me, and the unrealized losses just continue to add up. Profits from that original year-long boom are just eroding now, and quite a few of my altcoin holdings are like at the beginning, or below their starting, I mean. Just want to turn the green taps on again sooner rather than next month.
The hardest part is remaining in control of emotions during times such as this. It is difficult not to be hasty and panic sell or try and catch falling knives. Experience indicates, however, that these are usually times when keeping one's head and staying with the original plan is paramount. It's infuriating to see gains taken over many months lost in a matter of weeks, though.
I've seen a couple of market cycles before, but this one is unique. The speed of the reversal, the intensity of the selling pressure, and the complete shift in market sentiment have been breathtaking. Perhaps it's because everyone was so bullish after the ETF approvals and the impending halving. The market loves to humble everybody, especially when everybody's most bullish.
For now, I'm going to step back from the charts and attempt to clear my head. Sometimes the best trade is no trade, and today feels like one of those days. The market will do what it does, not what we want or anticipate.
No more talk of crypto from my end from now on until I see some green in the market!