My Take on our Cryptocurrency Market as of 5/26/22
Hello fellow traders.
I have a few things that I want to discuss as of today that I am having mixed feelings about.
The cryptocurrency market as of right now is in a weird spot, being well correlated to stocks while wanting to take its own approach with our inflation rate and market fud. When the Covid crash occurred, many sources of investments in stocks and crypto had been rugpulled due to market fear and government intervention. In massive times of fear, those brave bought and accumulated while others sold their holdings. And to say the least, they are up A LOT... even now. This accumulation and bullrun that had taken place after this massive selloff had signaled a bottom, and many investors FOMO'd back into their holdings. This crash, burn, accumulation, recovery, and rally all led to an unhealthy, early bullrun for lots of investments after the 2018 bear market. Since this run wasn't as healthy as others after a big bear market, we met a top a lot quicker at around a 2.55 trillion dollar cap for the Crypto Currency Market. When we rejected 62k and flew down the first time to around a 1.15 trillion dollar market cap, we flew back up as that acted as a mid cycle correction for cryptocurrencies.
Okay, so here's the issue...
So you guys know how the cryptocurrency market shares a massive correlation to the S&P 500, and stocks alike?
So, it just so happens the S&P 500 rejected off of a massive fib level (4.618) as bitcoin was ready to make a higher high beyond the 60ks and even 70ks - in October / November (without intaking a theoretical logarithmic trend, because a logarithmic trend can't be drawn without the tops and bottoms of 3 big cycles). Since the cryptocurrency market and the S&P 500 are correlated, bitcoin along with many others fell right along side the S&P 500 from November's ATH.
My take is this. Bitcoin had not wanted the 69k mark to be its ATH, and the cryptocurrency market wanted to fly beyond its 2.55 trillion dollar ATH.
But.. it had no choice...
As the S&P reached its logarithmic targets and the Covid crash created an early and unhealthy rally for the market as a whole, bitcoin's streak of healthy cycles had been cut down.
Okay, so we explained this weird price action in the past year and a half... so what about now?
Truth is, I don't know. But I'll give you a swift prediction (in terms of bitcoin, our market leader).
We will most likely see a relief rally up from this level. Stocks and Crypto alike are at a massive support, both ascending and by Fibonacci. Below this level will bring out max pain in the market. We will see capitulation no doubt as below 25.5k bitcoin reside no fundamental supports, until we reach the teens.
Below 25.5k bitcoin, it gets scary. But when price gets scary, people are made rich. Accumulate as cryptocurrency should not be going away. I'll give you some of my buy areas, but be careful when DCAing. Have solid risk management. If you want tips, contact me.
My Buy Levels:
25.5k
23k
19k
17k
14k
Once again, manage your risk. Buy down in exponentially greater amounts.
Good luck and stay strong💪.
I have a few things that I want to discuss as of today that I am having mixed feelings about.
The cryptocurrency market as of right now is in a weird spot, being well correlated to stocks while wanting to take its own approach with our inflation rate and market fud. When the Covid crash occurred, many sources of investments in stocks and crypto had been rugpulled due to market fear and government intervention. In massive times of fear, those brave bought and accumulated while others sold their holdings. And to say the least, they are up A LOT... even now. This accumulation and bullrun that had taken place after this massive selloff had signaled a bottom, and many investors FOMO'd back into their holdings. This crash, burn, accumulation, recovery, and rally all led to an unhealthy, early bullrun for lots of investments after the 2018 bear market. Since this run wasn't as healthy as others after a big bear market, we met a top a lot quicker at around a 2.55 trillion dollar cap for the Crypto Currency Market. When we rejected 62k and flew down the first time to around a 1.15 trillion dollar market cap, we flew back up as that acted as a mid cycle correction for cryptocurrencies.
Okay, so here's the issue...
So you guys know how the cryptocurrency market shares a massive correlation to the S&P 500, and stocks alike?
So, it just so happens the S&P 500 rejected off of a massive fib level (4.618) as bitcoin was ready to make a higher high beyond the 60ks and even 70ks - in October / November (without intaking a theoretical logarithmic trend, because a logarithmic trend can't be drawn without the tops and bottoms of 3 big cycles). Since the cryptocurrency market and the S&P 500 are correlated, bitcoin along with many others fell right along side the S&P 500 from November's ATH.
My take is this. Bitcoin had not wanted the 69k mark to be its ATH, and the cryptocurrency market wanted to fly beyond its 2.55 trillion dollar ATH.
But.. it had no choice...
As the S&P reached its logarithmic targets and the Covid crash created an early and unhealthy rally for the market as a whole, bitcoin's streak of healthy cycles had been cut down.
Okay, so we explained this weird price action in the past year and a half... so what about now?
Truth is, I don't know. But I'll give you a swift prediction (in terms of bitcoin, our market leader).
We will most likely see a relief rally up from this level. Stocks and Crypto alike are at a massive support, both ascending and by Fibonacci. Below this level will bring out max pain in the market. We will see capitulation no doubt as below 25.5k bitcoin reside no fundamental supports, until we reach the teens.
Below 25.5k bitcoin, it gets scary. But when price gets scary, people are made rich. Accumulate as cryptocurrency should not be going away. I'll give you some of my buy areas, but be careful when DCAing. Have solid risk management. If you want tips, contact me.
My Buy Levels:
25.5k
23k
19k
17k
14k
Once again, manage your risk. Buy down in exponentially greater amounts.
Good luck and stay strong💪.