RSI and MACD showing weakness in the face of a price rally...this is rarely good.
Weakness.
If you need some cash over the next 12 months...now is probably the time to cash in some crypto. Long-term crypto investments however, you HODL. And if you’re using any crypto for a (better) medium of exchange, do not convert that.
Crypto is obviously the future of finance. And the long term picture looks fantastic. But it looks like we are going to take a bull market break. Even a Sprint Runner has to rest occasionally.
Bigger Picture.
Even though crypto has many more advantages than the legacy system...which prompts many institutions, governments and people to inject their capital into crypto, pushing prices up. Do not underestimate the power of credit...which drives the price of most capital assets up.
And who creates credit? Central banks and financial institutions. If that credit dries up because of policy or market changes, the vast majority of capital assets, including crypto, goes down...regardless of how awesome we think crypto is.
Crypto does not exist in a vacuum. It is heavily dependent on legacy credit. A lot of the momentum in crypto is coming from institutional money (sovereign wealth funds and governments to follow).
And one big important point...crypto has not been through a sustained debt crisis. We've only seen crypto in an expansion economy...where credit and debt has only been expanded.
So be careful out there.
Stay frosty (and solvent) people.
50% allocated to ph-fund.
Absolutely. Crypto is not for daily expenses instead its or long term and better to buy and HODL for few years to get decent returns. The market is in the dip but nothing to worry if the goal is long-term.
@tipu curate
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Thank you @tipu.
Yeah, crypto is long term...and bear markets are just bumps in the road.
And thank you @alokkumar121.
Dear @fijimermaid
Solid read. Topics related to finances are definetly one of my favourite ones :)
I myself don't use RSI and MACD indicators much, however I learned that millions of investors around the world care about TA. So obviously if those millions will come to some conclusion based on MACD, then chance that they will be right is increasing. It's little bit like self-fulfilling prophecy, wouldnt you agree?
I'm a bit confused. Is current dip a good time to change crypto to FIAT ? Wouldn't you expect that current dip will come to an end sooner than a year from now? (mentioned 12 months)?
My impression is very different. This bull market is far from being over. We had years to shake off so called "weak hands" and most people who are in crypto space are the ones who have been around for quite sometime. And recent short bull run has been simply TO SHORT. So not that many newbies enteres the market.
It's crutial to rememeber, that so called "market makers" build their wealth by transfering it from all those newbies. Who are easy to be scared and tent to panic-sell. We just don't have much of them yet.
I would recommend checking out google trends for "bitcoin". Once this will reach all time high (Which would last at least for several weeks), then we may expect another heavy crash and perhaps even return of bear market. Until then - I think we're still up for solid upward movement (after few weeks of consolidation).
Have a great weekend buddy,
Cheers, Piotr
Absolute truth friend, Crypto does not exist in a vacuum. It is heavily dependent on legacy credit. A lot of the momentum in crypto is coming from institutional money (sovereign wealth funds and governments to follow.. We should note this as we engage the cryptoworld.
Yes we should.