Don’t Try To Catch The Bottom – Overview BTC, ETH, XRP and IOT
Looking at the Amazon stocks is quite interesting when figuring out the big picture of the market. The graph below shoes the Amazon stocks after the dotcom crash at the end of 2000. It would take investors that “HODLED” from 80$ a share multiple years to get back their investment. At around 6$ per share was the cheapest you could have bought amazon shares at the end of 2001.
Of course in retrospect it is always easy to look back at charts and say ” Hey we should have bought the dip” The thing is no one knows when the bottom is.
When we look at the
The full Article on What Bear Markets Look like can be found here:
I recommend this read if you are unsure about your investment strategies.
On another Note I also suggest pro_indicators video on a related topic catching the bitcoin/cryptocurrency bottom.
On the weekly timeframe for a longterm perspective, the next bitcoin support is at 3000USD. Since Bitcoin had a very fast an exponential growth in 2017, the support lines are quite a far apart from each other which is something to be expected with such fast growth.
Should Bitcoin not hold the 3000USD Support, then it may well touch the 2000USD support in the next few months.
When exponential growth happens in a short amount of time, then the market does not have the possibility to stabilise and create supporting prices. Concerning Ethereum I hope it stays above the 100USD price level. If not then there is a big chance that we see prices like we have seen at the beginning of 2017. A big reason for the decline in Ethereum is due to the ICO investment craze of 2017. With so many new ICO projects looking for investors, money was thrown left and right in the hopes of gaining a quick buck.
The ICO projects that have amassed huge amounts of eth need to liquidate in order to pay their employees or just let the project die since they have fulfilled their financial needs. The market definitely needs to calm down and find it’s footing. I will be definitely acumulating below the 100usd levels. (Remember not financial advice)
Ripple bounced of the .54 usd resistance line. There is a strong probability of it moving down to touch the .26 usd support. Let’s see how the buying power is when it touches the support. At the moment the buy orders on exchanges have a high spread. This means that any bigger market sells can cause the price to drop significantly.
Iota has also been suffering a lot lately. It broke below to main Supports and is likely going to test 18 cents in the coming weeks as there are no strong support levels between 26 cents and 18 cents. I will be definitely acquiring some more coins at these levels. Even though it is very difficult to predict where the absolute bottom of the market will be, by dollar cost averaging, I will hopefully get a very good average entry point into the market.
In my opinion we are entering a phase of accumulation. If you think about it, it definitely makes no sense to start selling now. Especially if you had the opportunity to sell when your coins were at a 10x or 20x of the current amount. You time to sell has long passed. However, suggest that you always manage your risk and decide which amount you are willing to lose. If you look at the last few bear markets, they lasted around 1.6 years. The current one is barely a year old. You should see this as an opportunity to add to you positions before the fomo starts to kick in. Then it will be too late. That is why the dollar cost averaging method work for me the best. I set my alerts for price levels where I feel comfortable to add more to my position.
Good luck and stay safe.