Bitcoin marks strong correlation with stock markets
At the time of writing this post, the price of Bitcoin was threatening to drop to the $26,000 area, an action that on the one hand confirms the bearish projection of BTC and on the other hand, ratifies a highly correlated behavior with the price action that the stock markets have presented in the last week.
The truth is that, the price of Bitcoin plummets again validating what hundreds of analysts feared, as if the stock market continued to fall the most likely scenario was that the Bicoin would react the same way and apparently everything points to a continuation to bearish.
Paradoxically, it has been inferred that since last October the Bitcoin has been leading the markets, a behavior that gave the impression that far from the chaos of the traditional markets, the Bitcoin would be favored, but the outcome of the last hours is an indication that the cryptocurrency market will not be able to recover from the financial crisis that the world's economies are going through.
Investors and traders in the cryptocurrency market show their concern and some predict that the Bitcoin price may go to the $20,000 area, then run a sideways zone and plummet again, which will undoubtedly cause the whole market to panic.
Now beyond panicking, we must remember that all financial markets including cryptocurrencies execute this type of parabolic behavior, therefore, this drop should be viewed as we have seen them in previous cycles within the cryptocurrency market.
Consequently, I believe that we must create strategies that allow us to coexist in this new price collapse, I would like to know what actions you consider should be executed to be able to withstand a bearish continuity scenario.
SOURCES CONSULTED
CointeleGraph Bitcoin price drops to lowest since May as Ethereum market trades at 18.4% loss. Link
OBSERVATION:
The cover image was designed by the author: @lupafilotaxia, incorporating image: BeinCrypto
it's a meltdown, I wonder how many altcoins will survive this. Truth is that we will lose countless of them, including some of the top gainers in the bull run.
Hello friend @joelagbo
It would be interesting to know which ones will oversold and which ones will not, the truth is that we must be very cautious when investing in this bearish area.
Best regards, be well.
How far can we go, this is simply my question. I know things will get back to it best, we just have to keep holding.
Hello friend @tfame3865
Without wanting to create fear, some time ago I read some approaches from experts in the cryptocurrency market and they assured that the Bitcoin would reach the same point where it started the previous bull run.
Best regards, be well.
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Thank you for your support.
It's important to save up money and this kind of environment. Actually, it would be good to save money before this kind of event happens. Recessions and unemployment usually follow credit contractions and bear markets. I'm thinking Bitcoin is going to bounce between 10K and 20K for the next 12 months. Depending on what Central bank's do.
Hello friend @fijimermaid
Correct, the time has come to save and accumulate our digital assets, better times will come of that I am sure.
Best regards, be well.
Hello friend, it is really a worrying situation, but I think we all know that this can happen at any time, for that reason we can not depend only on 1 income, we must diversify the income and know how to wait, better times will come for cryptocurrencies. Greetings.
Hi @franyeligonzalez
Certainly it is a worrying situation, this is where we must have the patience to endure this pullback, all price action follows a parabolic pattern and will come the recovery zone that will allow us to sell and take profits.
Best regards, be well.
Because Crypto is the most volatile asset right now it is the first that is getting sold off. Because there is a lot of institutional money in this industry right now we are seeing this corelation.
For me I will just continue to DCA as the crypto winter wont last forever :)
Hi @ga38jem
You are right the winter in the cryptocurrency market will not last forever, these are just natural cycles of the market and we should face them calmly.
Best regards, be well.