Perfect Storm for a Crypto Bull Market – BUT DON’T LET YOUR GUARD DOWN!
Bitcoin has been leading a bull market back into price ranges and Fibonacci levels not seen in over a year. With transactions on the Bitcoin network returning to 2017 levels, Bitcoin touched just under $14,000. As a result, excitement has once again engulfed the cryptocurrency community, with exchanges such as Coinbase feeling the pressure.
As always, the market rinses investors and derails those who act out of fear and greed. As Bitcoin overextended itself, it sharply and healthily pulled back, wiping almost 20% off its price and dragging altcoins down with it and triggering a mini panic in the markets.
It’s been a tough couple of months for altcoins. Not only are they being slaughtered in price relative to Bitcoin, but any hiccup by Bitcoin causes alts to lose against the USD. Is this the perfect time to buy before another altcoin season begins?
Bitcoin Went From $3,200 to Over $13,000 in Half a Year! A Pullback Was Inevitable
Cryptocurrencies can provide investors with a turbulent experience, but with unmatched profit potential for those willing to wait, the potential is huge, and Facebook’s announcement of Libra only confirms the shift towards money 2.0.
It’s important not to drop your guard with assets as volatile as cryptocurrencies. Only the strongest hands and the most logical investors and traders will survive the fast-paced bull runs and bitter downturns.
The overall digital asset markets are still immature and easily shaken. This was one of the major factors for the widespread crash of all coins – markets saturated with fear and anxious selling drove prices even further down to the lows we witnessed.
To sum up the hype/fear cycle, memes are often used to illustrate opinions on social media with a singular statement. The below picture is a meme jokingly mocking the mindset and hair-trigger mentality of retail investors in the cryptocurrency space.
While the sudden 20% drop took many by surprise, Bitcoin is currently still up over 3x what it was at the end of 2018. Despite this market being the contrarian’s dream investment, human nature never changes – even with cryptocurrencies!
This is not investment advice; please always do thorough research and only invest what you are willing to lose, especially in times of uncertainty.