Bitcoin Gives Up Gains As Investors Become Wary
We were set for a beautiful day in Cryptolend, as Bitcoin was up over 5% earlier today, until the Bears decided to ruin the party. 30 minutes before the market close ( If we can name it a "close", after all cryptos never stop trading) we are seeing a bearish action on the tape and volume also picks up. We are very far from the 14 356$ high for the day and in my opinion bulls are getting tired from defending the 13 000$ support level.
In my opinion a lot of the uncertainty and selling pressure is due to political reasons. The South Korea FUD, China further strenghtens crypto ban, France and other countries are reviewing ways to implement regulations. All this is bad for the Crypto-Economy and unfortunately we have to be prepared for more of the same. If you missed my article on the World Economic Forum Meeting ( A meeting, where a lot can be decided) you can check it out HERE.
Overall we are in a consolidation, after the crazy bull-run we saw earlier this month, a bit of consolidation is very nice. Although Bitcoin is looking very weak lately, it wouldn't be unlikely to see it moon in a matter of days, so don't put your guard down.
My indicators are very uncertain at this moment and a bearish scenario is more likey for me. I think if you are a trader, you should be careful, if you are a HODLER - you have made good gains already, no need to panic. We are seeing a lot of profit taking at the moment and unless Bitcoin breaks the 13 000 and 12 000 $ support, things aren't going to get ugly.
Look for the key support levels and decide for yourself, bears are ready to attack !
Looking like the market will be ripe for a buying frenzy when the BTC price drops below 12. Looks like a good time to just hold off and see how low It'll go. there will new wave a good news eventually that deafens the noise from this current stink of negative news.
I hope you are right. If BTC breaks 12k, it will get very interesting! Maybe even Pandora's box will open.
I'm thinking of hedging many of my assets in privacy coins before more news of government crackdowns come to light. Monero seems like a sleeping giant in that scenario. Thoughts?
I really think that if market goes down, everything goes down with it. I don't think there is a "hedge" in crypto. We don't have a VIX, unfortunately. Maybe Cash position is the best alternative.
Very true. I've been thinking of having cash reserves to buy large dips / the crash.. been putting it off since I hate seeing my fiat currency just sitting there! Cheers @ervinneb
You definitely should have cash reserves, in case a good opportunity comes ( it might be a something else, not crypto) you can act on your idea. Not having the cash, but having the idea is a bit of a bummer. Although money can always be found, when the idea is there. Cheers, mate
Nice post
You are absolutely correct, crypto market going down. Can we say this month as 'Black January' for cryptocurencies? resteemed.
Well, I think that January is not over yet, but if we see Bitcoin at 5000$, we surely can say that