If you are an avid reader of CryptoTicker’s awesome articles, you would have anticipated a market adjustment. This event comes after a long extended uptrend and comes at an expected timeline. In a previous article, we specifically wrote about why buying at current all-time highs is a dangerous move, and waiting is a good idea. But the bigger question lies ahead: How to know when to start buying again? Is this a short-term price adjustment or will it be an extended downtrend?
The Cryptocurrency as a whole is DOWN
In the last 24 hours, the whole cryptocurrency market lost around USD 34 billion, down 4% for the day. Here’s a list of the top 5 major-loser coins affected:
- Bitcoin Cash: -10.52%
- Binance Coin: -7.91%
- VeChain: -8.97%
- Aave: -9.21%
- Nexo: -10.87%
Should you feel concerned?
The answer is pretty simple:
- If you bought at high prices, you should consider studying where the support levels are, and keep an eye on if prices break through those limits, taking into consideration your risk appetite.
- If you bought at low levels and still are in the green, then you shouldn’t worry too much about today’s market adjustment. Though it is advisable to keep an eye on the general consensus of the crypto market, as price adjustments in the crypto realm are known to be harsh.
In all cases, technical analysis is used to determine entry and exit prices. Don’t feel afraid to liquidate your position into stable coins to hedge price adjustments, and catch better prices.
Is the current Price-adjustment a short-term event?
Today is a big RED day in the crypto sphere. No one can accurately know if there will be an extended down market in the coming week, but we can always check back with the charts by checking support-resistance levels.
In figure 2, we can see a potential retracement back to the average uptrend, where the Market Cap could be worth around USD 610 billion. Market breathes are normal occurrences and shouldn’t be looked at in a negative way. They’re usually profit-taking opportunities for HODLERs.
The biggest concern for cryptocurrency users would be the technical difficulties happening with different well-known trading platforms, such as Binance for example, facing numerous problems whenever there is high volatility in the market, be it price matching or order taking. That’s why it is always a good idea to store your coins in a private wallet, versus
keeping your coins with your broker.
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