The cryptomarket shook everyone this week. With new Bitcoin lows of $3600 we have reached the lowest point this year. This Monday morning we bounced a bit but we are still not convinced that this was the end. If the Bears keep strong we will now see a new support level at $3,000 for Bitcoin.
Beside Bitcoin there are multiple alt coins which have dropped dramatically. For example our beloved Blockchain 2.0 coin Ethereum. Smart contracts and ICO’s are crashing because the market is falling. ETH is now third in place after XRP, Ethereum lost over 90% in market cap which is an indicator there is almost no interest left in this coin. As for now, we are waiting till the market turns so that we can follow an uptrend or to trade in consolidation.
So what did actually happen and what will happen next?
What we witnessed is a dead normal market cycle. As a few of us might understand is that there are cycles in financial markets. Some of them might be fruitful and others might be not profitable. Bear and bull markets are always a psychological disaster, because the human mind is always disengaging in real life facts. The human brain is a smart but emotional organism. Our thoughts might be different when feeling amazed, ego, or master of the universe. In good times it’s like there are no treads and everything will be fine forever. But there comes a time (bear) market where our thoughts are turning.
This is a good illustration of what happened in the past year.
We are currently 334 days in the bear market, as for this bounce on Monday morning we are expecting a third leg down. See picture below to realize all major Bitcoin Corrections. From September 2010 till November 2018 (now).
As for today the total market capitalization has recovered 7.5% on the day as almost $15 billion flew into the market after so many billions fled out. We have multiple reasons to believe there are better days coming. ETF’s, technical updates on coins, mass adoption is still around the corner yet the question is when will it come?
The most important thing is if you did not yet sell your crypto or if you did – follow the market closely. You might never know when good times for crypto will be back.