Lately all of the major cryptocurrencies were dipping and are reaching all-time lows.
Currently the market is bleeding and massive red is seen down the top 100. There are lots of reasons behind this. Reasons like increasing regulations, government crackdowns, hacking and media-induced panic.
However the crypto markets were always volatile and some corrections are healthy for the ecosystem.
Cryptocurrencies are volatile
Lately the markets are feeling an increased selling which pushes the prices down.
Currently the market cap has fallen under 320$ billion and continues to drop.
These big volumes of selling mean that the players are switching but the game continues. The lower price levels that we reached will attract new investors who believe in the technology.
The leaders fell through and the altcoins followed suit.
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Percentage wise alt coins declined to a larger degree than Bitcoin and Ethereum. Despite the volatility, every investor knows to never sell low so hodl is the tactic in these times. A lot of investors panic when there are negative news and dump their positions.
You can hear a lot of opinions about the bubble and so on. But for most people this is a great buying opportunity and a great entry point for beginners.
A great thing to remember is that not all cryptocurrencies will rise equally.
Percentage wise some will rise more from their current price.
Advanced traders will go in with different strategies in mind. Either will look for the strongest that recovers faster than the others or the one that will have more percent growth.
Should I buy in the dip now or wait more?
For beginner traders maybe it is better to make fewer short trades during the turbulence.
Bitcoin hit its lowest point since 80 day ago.
The bearish dominance can be felt with Bitcoin declining by more than 60% from its all-time high. There were first signs of buying and support in the 8000$ range but later we fell through to the 7000$.
The price of Bitcoin fell to around 6750$ and is still bouncing up and down around the 7000$ range.
Still a lot of support has come to keep it around and indicators show that it is oversold right now.
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A break down to the next key support level can be at 6000$ levels and will be a new all-time low.
When Bitcoin pulls back up it can lift itself to the upper resistance level between 10,500$ and 11000$.
I expect there to be at least one more round of selling so long-term investors can wait few days before buying.
Ethereum broke many support levels on the way down. At first there were support at the 750-770$ level but later it fell to under 650$.
Right now the price is still fluctuating around the 700$ mark.
On the way up Ethereum will face great resistance just above the 1000$ level. It will be a turbulent way up.
Cryptocurrencies: Buy The Dip?
Ether still has one of the biggest volumes. Furthermore Ethereum is used in more than 50% of all trades so its value and importance is still here.
Ripple has fallen flat with an over 80% decline from the all-time high.
It bottomed at around 0.66$ and is pretty unconfident. Ripple had a strong support level of around 0.90$ which was broken since.
On the way down the final support level for Ripple is at 0.60$ and if broken we may see catastrophic events for the currency.
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On the contrary the pull back up can meet a good support around the dollar. But the risk and reward ratio is not that good.
Ripple still is progressing with its mission to revolutionize peer-to-peer transaction and is signing new partners.
Bitcoin Cash (BCC)
Bitcoin Cash has declined with more than 75% from its peak which was at 4000$.
Bitcoin Cash’s bottomed at under 850$ and is currently still floating around the 900$ level. Still the volume is pretty good and in a possible pull back we may see BCC at the 1500$ level.
Cardano (ADA) and Stellar (XLM)
Cardano has struggled to maintain its support levels and is diving from some time now.
Cardano bottomed at 0.31$ which is higher than the last dip of around 0.27$ which is good.
It means that a stronger support has come to balance Cardano a bit. Stellar bottomed at just above 0.30$. Lately it showed a lot of volume and it seemed like it is recovering faster than Cardano and others.
These large volumes of selling will not conclude in a single day.
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I expect the markets to bounce back healthier than before but it won’t happen overnight. After such corrections we can expect to see green in few days after very volatile action.
Aggressive and advanced traders can try to trade in these market conditions but for inexperienced traders it is better to hold for now until things cool down.
For long term hodlers and people who want to enter this market for the first time, buying at the lows is a perfect opportunity.