So, yesterday we had a sudden drop in Bitcoin after a few days of consolidation that followed its most recent jump to the $10500 resistance level. This was a drop below the 10k level for the third time in the past week and as usual caused the rest of the crypto market to drop as well, with some of the alts recording much bigger price devaluation. XRP (-7%), BCH (-8%), BSV (-10%) and EOS (-9%) are just some examples.
This is not unexpected and yet, after a very strong uptrend since the beginning of February, this sudden decline in prices got people worried again. On twitter we saw many complains and fearful comments which prompted me to write this post today and set the record straight.
Indeed, in the past day the market is down by about 10% on average but let’s take a look at the bigger picture. If we zoom out and take a look at what’s happened in the bigger time frame of one year, we will be astounded. Which is why I post this screenshot here.
These are the top 10 (by mcap) cryptocurrencies and their performance in the last 12 months is highlighted in yellow on the right. As we can see, the only one that has a negative (and it’s just 0.02%) is XRP – a coin that has been struggling to recover after a much better year prior. The other one is USDT which I don’t regard as a cryptocurrency for obvious reasons.
Everything else is on the rise and some of them by huge margins. Bitcoin is up +171%, Bcash +251%; BSV +394% and Tezos … a massive +608% gain. If that doesn’t paint a bright picture, I do not know what will.
So, in short, should you be worried about the current short term slide down of the crypto market? The answer is strong NO. This is yet another corrective move, a much needed one may I add, and it is by no means the end of the bull market. If anything, it is the last gasp before the big rally that is to come.
I for one am certainly buying this dip and have no concern about the short term as you know. I prefer to trade on the big moves and as I always say, you need to have patience and a strong hand. Enjoy the ride, we are going to have a very good year ahead.