We are a US based company and its always ‘fun’ when you wake up to everything down 15-20%, so thats what happened to me today and Im sure you as well. Unless you live elsewhere, then you most likely were watching it live! Well we saw some of the carnage first hand. Bitcoin tested its breakout level, Ethereum tested a prior high and many coins made new lows in their consolidations including IOTA, Monero, Dash and OmiseGo. However in the land of cryptocurrencies, especially at this point in time, buying dips is a great strategy.
As this market matures this may not be the case, however its impossible to tell when the turn will happen, if your used to investing in the stock market you may have seen the saying “Buy the F’ing dip”. Its been true in Cryptocurrencies though its not always that way in the stock market. With Cryptocurrencies mostly being a few years old the tech is new, the excitement is high and most of these projects arent actually live yet. So we dont have the same headwinds that we have with the stock market. In the stock market you have very mature markets, professionals that sit 12 hours a day trying to figure out a way for retail investors (you and me) to buy shares that they are selling. The large institutions hold 90% of the shares in the stock market, so when the market sells off they benefit in the fact that they are taking profit off of the table. They buy at much lower prices and they sell at highs, they create those lows and highs!
In the cryptocurrency world I do not believe this is the case yet, the long term holders do include some Wall Street people and we are going to get them in here more and more each day, but they dont have tradable positions yet, not to mention that they are going to have to pay inflated prices for these assets. So when you see very large volume bottom bars, its Wall Street getting in! Not always obviously but its going to happen more and more. I am actually anticipating the 300% moves are gone in the larger coins, due that Wall St takes profits sooner unless there is a strong fundamental case for several years, in Crypto’s were most likely extremely overvalued, therefore they will take profits sooner. So just as we see high volume lows, you will have to look out for high volume high’s with large bars for selling signals.
So as per what happened today? It was a short term selloff that is mostly done, we’ll get some more selling but the majority of it is done in our opinion. These markets are incredibly resilient, however one day we will see another prolonged bear market for a few months. At that point, get ready to mortgage the house, because were in for another massive run.
As for todays selloff, here is my most recent video regarding this selloff: