Bulls and Bears (survivor of the fittest!!!)
Where is the Crypto-market now? How did it reach this point?And,How the market could move next?
By (Ledger256-Trader)
Three questions every crypto enthusiast think of all the time. If you are bullish, bearish, hodling or cashing out OR even new to the market, this article will help you get some answers to those questions.
Let’s first analyze bitcoin, 2017 was heaven year for all bitcoin enthusiasts , couple of forks and news about lightning network implementation pushed the price parabolic-ally. It is also very obvious that institutional traders and forex pros stepped into the market flooding the crypto-space with cash and since supply is limited we see a graph like this.
By mid-December, price reached its peak at the 19k range and then started to correct, as both speculative traders and investors started profit taking. Also with the introduction of bitcoin futures, institutional traders had access to short sell the market, as a result a bearish trading channel has formed as shown below.
How could the market move next?
As we all can notice the market is uncertain. Speculative predictions are still filling the media with not much qualitative or fundamental data to support it. And as far as the downtrend isn’t broken to the upside, the market will probably continue to drop and follow the pattern. Decisions to buy or sell are very subjective at this road fork, so depending on your trading strategy, plan, portfolio and access to liquidity, you can take a proper decision.
So if you are fundamentally bearish and have done your own research and confident with it, it’s a good time to short and put your stop loss above the trend line leaving enough room for bitcoin volatility.
But when is a good time to buy back?
If we take a closer look the price is touching the resistance line, So if it breaks that line that’s a bullish signal but is it
enough?
You have to wait and confirm that the price will stay above that line AND gains enough traction above it. And at the time of writing this article the price already broke the channel and entered it back.
SO DON’T RUSH!!!!
Remember it is always a good idea to buy in slowly and as price continues to go up, you can deploy more capital, and always set a stop loss that takes into account bitcoin volatility.
If you like this article,
Follow us on Steemit - @ledger256
Join our Telegram group - https://t.me/joinchat/GXO2tBJ1TWgm0AHo9d4Scw
*We're always around to be of help in all things crypto and blockchain :)
Follow our Telegram channel - https://t.me/ledger256
Email us - [email protected]
And stay tuned for more market analysis and much more topics about trading
DISCLAIMER
NO FINANCIAL ADVICE – The information on this blog is provided for education and informational purposes only, without any express or implied warranty of any kind, including warranties of accuracy, completeness, or fitness for any particular purpose. The information contained in or provided from or through this blog is not intended to be and does not constitute financial advice, investment advice, trading advice or any other advice. The information on this website and provided from or through this website is general in nature and is not specific to you the Reader or anyone else. You should not make any decision, financial, investment, trading or otherwise, based on any of the information presented on this blog or any affiliated channel without undertaking independent due diligence and consultation with a professional broker or financial advisory. You understand that you are using any and all Information available on or through this website at your own risk.
RISK STATEMENT – The trading of Bitcoins and alternative crypto-currencies has potential rewards, and it also has potential risks involved. Trading may not be suitable for all people. Anyone wishing to invest should seek his or her own independent financial or professional advice.