This Correction Is Resetting the Balance in Crypto
Over the past couple days I've taken the FUD, and the disappointment, and the confusion and put them to the side for a second. Having a put of time to think has made me realise that this correction in the market is more a good thing then it is a bad thing.
There's the classic saying of the correction shaking out all the weak hands in the market et cetera et cetera. However, I think there's a double effect within this correction. It allows the quote un quote "strong hands" to pick up more of a stake in the crypto-verse.
When Bitcoin and all the other coins were going on massive runs, I kept seeing people want to join put more money in, but realise that it's not really possible due to how high the prices were going. I mean from a theoretical standpoint, you should not invest when something is taking off. You're more likely to get burnt at that point.
Now Bitcoin and all sorts of other coins are way down and it gives a entry/ re-entry point for a lot of people who want to put money in this space. At the moment, people are just waiting to see how far down this will go before they invest back in (like me).
I've now come to the opinion that it is almost inevitable for the crypto-verse to rocket back up. It's only a matter of when.
According to the firm Autonomous Next, the number of hedge funds investing in digital assets like Bitcoin has grown rapidly to more than 100. Since the launch of Bitcoin Futures on the Chicago Mercantile Exchange in December 2017, it shouldn’t be a surprise to anyone why the price of Bitcoin is down 50% from the high.
bitcoin.PNG
Only Retail Investors chase price and buy high and sell low, while the Professionals buy low and sell high. The Hedge Funds have purposely sold Bitcoin futures to get in a better price.
At the moment, there is a war taking place between the buyers (Hedge Funds) and the sellers (Retail Investors) called capitulation. That line in the sand was at $9000. Capitulation is when investors give up any previous gains, by selling, in an effort to get out of the market. Capitulations are outcomes that result from the maximum psychological and financial pain that can be endured by a group before throwing in the towel. The Retail Investors are throwing in the towel after seeing a more than 50% correction in the Bitcoin price to the buyers, the Hedge Funds. With 100s of millions of dollars to invest, we are witnessing an accumulation phase by the Hedge Funds between $6000 and $9000.
The Hedge Funds are loading up and buying from the Retail Investors. But to fill all their buy orders, as the sell orders dry up, price must go down to the next stack of sell orders. We are approaching what I believe will be the bottom of bitcoin at $6000. My first target is $12,000 and my second target is $17,000 over the next 3 - 9 months.
The easy money has been made over the last 12-18 months. With the big boys in the game now, the rules have changes. The question is, are you ready to play to win with a new play book?
This post is my personal opinion. I’m not a financial advisor. Do your own research before making investment decisions. By reading this post, you acknowledge and accept full responsibility of any gains or losses.
Well yeah... where do you think all the money that use to be in the market has gone? As far as I'm concerned, it's just sitting there waiting to be shoved back in.
You got a 1.56% upvote from @postpromoter courtesy of @cyrptoreports!
Want to promote your posts too? Check out the Steem Bot Tracker website for more info. If you would like to support the development of @postpromoter and the bot tracker please vote for @yabapmatt for witness!