On the financial markets, both crypto and traditional ones, you see often longer trending moves in the prices. Although many of them can be identified only later, when the largest part of the move already was done. But in a trend, there are mostly smaller or greater moves in the opposite direction.
A correction traditionally means a 10 percent move to the other direction than the main trend. The move in main stock indexes from the beginning of February 2018 was a typical one, erasing 10,2 percent of the value of the S&P 500 index. But it didn’t meant a turnaround or trend reversal. Prices are moving in a channel, sideways since then. (See the graph.)

S&P 500, 1 Year Source: Yahoo Finance
Dead cat bounce is an other old stock market expression – because “even a dead cat will bounce if it falls far enough and fast enough” (Investopedia.com). This is a short, quick, also temporary recovery from a longer, strong decline in prices, that doesn’t change the main trend either. Often it has technical reasons, for example when short sellers are beginning to close their positions.

New era, new numbers?

What means all this in the case of cryptocurrencies? Can we apply this to Bitcoin, Ether, Steem? Are we in a downtrend, or is this only in a correction in the uptrend?
Cryptos are much more volatile than most fiat currencies, stocks, or commodities. May be we should consider 20 or 30 percent as a correction in the crypto-world, rather than 10 percent? Was the move from April-May, as Bitcoin surged from 6600 to 9900 Dollars approximately, 50 percent, also a temporary correction?

Sad reality

May be, but either way, the 66 percent fall in the price of Bitcoin (from 19 400 to 6400) in the last 6 months seems impossible to be only a correction. If it hurts or not, we must admit we are in a strong downtrend. With no sign of the end of it.
IMHO, we need at least 30-40 percent upwards to have a chance to leave this trend. But a longer sideways movement between 6000 and 10 000 also appears to be a real possibility in the next months. (But the cat definitely isn't dead, think on the 190 USD Bitcoin-price from 2015.)

Sell in may

Summer generally is not the time of big bulls in the stock markets either. (“Sell in may and go away…”) Many people are having vacations, watching soccer, grilling in their gardens instead of trying to make the big money on markets or make great things. May be we should get some fiat ready to buy if cryptocurrency prices fall further.

Disclaimer:

I am not a financial advisor and this content in this article is not a financial or investment advice. It is for informative purposes only, or simply to make you think. Consult your advisers before making any decision.