Signs of a recovery
The market has started to recover over the weekend with Bitcoin reaching +$2,250 this morning and Ethereum back to +£135. Sorry I price BTC in dollar and ETH in pounds.
Anyway, I thought it would be good to point out a few observations.
My entire portfolio dropped around 40% but this is now down to 15%. As I said yesterday, don't panic, these things happen, yes a 40% drop can be scary but these volatile movements happen all the time. Panic sales are emotional decisions and usually cost you margin. In time you will get used to these. Also if you follow the charts then you can see the trend lines.
We are not out of the woods yet. Yes the market has recovered to some extent but this is based on low volume trading, come next week we could see another wave of selling. My strategy will be the same though, hold it out.
If there is not another wave of selling and we move back up then we really are seeing a resilience in Crypto. I also feel that we are currently on the verge of a wave of global Crypto adoption.
If we recover to Thursday levels by Tuesday then we may see another wave of accelerated upward movements which also means we might see another few corrections on the way.
Expect the market to continue to be choppy and volatile.
One other pattern I noticed is that the majority of my larger coins, top 30, have recovered well, but my smaller punt coins less so. Some not at all. While the main coins have benefited from large scale institutional investment, the smaller coins are traded my retail investors on sites like Poloniex. Many of these investors margin trade and display a reckless, almost gambling approach to trading. I expect that many a hand got burnt last week and as such they have less money to buy back into the smaller coins. The recovery here may take longer.
This is all speculation and opinion of mine. Any questions then give me a shout.