What can we say… volatility in the markets. Strong declines surrounding the whole crypto market, especially in the alternative coins. The selloffs seem to affect negatively the short-term bitcoin rate as a lot of money goes out the crypto market, back to FIAT. The bitcoin rate is currently around $ 2400, the situation looks steady on support, even if we meet $ 2300. Following our previous report from last week, the resistance at $ 2600 has been tested in recent days and we seem to be still between the $ 2300-2600 zone.
Ethereum: The coin is suffering from a clear downward trend. Testing support level reached at end of last April. The trend now seems to be a drop in Ether’s BTC value. It may be influenced by the recent amount of ICOs raised on Ethereum blockchain. Watching ETH-USD, Ethereum had lost the strong support at $ 250 level and spilled just over $ 200. Many people wonder where it could go from now, so the answer is that there is always lower low. Ethereum has gained over 5,000% since the beginning of this year. The question is where it will meet the floor and turn around. It will be interesting to see if and when the peak levels of approximately $ 400 will be tested again.
The entire market cap has lost about $ 15 billion in just last two days. Now the value is around $ 87 billion.
Ethereum Classic: ETC vs. Bitcoin chart is looking balanced. ETC has stabilized above the level of 0.005 0.006 BTC, this is coming after a nice uptrend followed by a sharp correction. Resistance lays around 0.0083 BTC level. Rumors tell about ICOs on ETC, just like the ETH ICO trend. Another strengthening sign comes from ETC’s minimum decline despite the bloody declines of last week.
A word about the current market situation
For the benefit of those who are new to Crypto, and also for the more experienced, declines are part of the game. There is no market that only rises up. The problem with the downtrend is that we will almost never get ready for them. Two days of declines take with them weeks of gains, as stated – “The bull comes up by the stairs and the bear goes out the window”. It is important not to panic, to conduct a plan and never act under pressure. It’s better to sell into strength then to find yourself selling to dumps. Remember that “blood on the streets” and massive panic create new buying opportunities at the end.
In such days it is recommended not to overtrade till direction of the market becomes clear. Overtrading is a recipe for fast losses, not to mention loosing also trading fees. The market is not a plan by request. When everything is green around you play the game strong. In such days of mess, lack of direction – it is better not to trade at all. Sometimes the profit comes from not losing.
We may be at the beginning of a sharp down slope. It’s okay and it’s healthy for the market. Most of the altcoins have reached crazy market values, we have seen alts multiply by more than 10x since the beginning of the year. The market value of altcoins over bitcoin has already crossed the middle line, and probably a correction to this situation is more than desirable. Another reason is the uncertainty before the August 1st events. Uncertainty will always create a panic in the markets, and many of the trades who gained nice decent profits recently want to redeem their profits into FIAT.
On CryptoPotato there are two very relevant articles for these days: “BITCOIN HAD LOST 30% IN 10 DAYS: HOW TO SURVIVE?”. This article was written a year ago, after the market’s correction from previous ATH level of $ 1160 to the $ 700 low. And also: “8 MUST READ TIPS FOR TRADING BITCOIN AND ALTCOINS”. We wish you all quiet week!