The first quarter of 2018 has seen a sharp decline in market prices for cryptocurrencies. The trend had been downward until recently. This has been a very long bear market for most crypto enthusiasts but has given many people the opportunity to buy cryptocurrencies and hold in their bags. Anyone who has taken advantage of the bear market may have positioned themselves for great profits during recoveries.
Without doubt, the bear market really did cost people money especially all that bought during the peak times that is when Bitcoin was rallying around US$18,000. It may have been a terrible experience but that is the market and things can get really rough and unpredictable. Even though some experts saw it coming, many didn’t envisage it will take that long. Four months of a bearish cycle but with an awesome recovery in sight. This hasn’t been the first bearish run this market has seen. In 2014, the cryptocurrencies market hit a great low for almost 18months before recovering.
What causes this bearish cycle can be attributed to several factors but it is worth noting that after all the negative news surrounding bitcoin in the past quarter, the market was failing to go even below the $230billion market cap. In the trading sense, we call it a strong support. The last support that the Cryptocurrencies was hedging on was the $350billion market cap but it wasn’t strong enough and the market further dipped.
During all these times, there were news indicating regulations and SEC control and anonymous banning, ICO clamp down and many others. After all these negative noise several other negative noise in the market couldn’t further send Bitcoin and Cryptocurrencies to their grave, rather there has been a consolidation and strong support in the $250 billion region.
It is worth noting that, most investors and institutions that missed out on the bullish run of bitcoin and cryptocurrencies last year are trying to get in this time and they will use every arsenal they have to push the prices down by scaring people who are newbies to sell their assets or frustrate people from using it. In doing that, people shy away from using this mode of payments and that brings the prices down for them to buy. I covered the fundamentals of cryptocurrency prices in my earlier posts.
Last week, Bitcoin moved from $6,700 to $7,700 in 30 minutes and this was amazing run and has seen it break the $8000 resistance in a week with positive news of cryptocurrency adoption by investors and businesses.
It is even interesting to note that the Director General of the Security Exchange Commission disclosed at a digital business conference organized by the Noble international Business School in partnership with Joy business in Ghana considered Cryptocurrencies as assets. Coupled with Bank of Ghana to regulate Bitcoin Trade, you can only see interest in Cryptocurrencies rising. The Banks are really interested in cryptocurrencies worldwide.
Cryptocurrencies with the power of blockchain is going to be very big in 2018 and beyond, there is recovery in sight and it is not too late to start gathering cryptocurrencies. With difficulties in what cryptocurrency to buy has become a headache for newbies, businesses and investors. This is not a problem if you have people or players who are futuristic and know the trends very well in the cryptocurrency space.
There is a major bull run to happen and anything can happen anytime. We just keep our fingers crossed and gather as much as we can before the run happens for there is light in sight.
With a lot of technical details surrounding bitcoin and cryptocurrencies littered all around together with its confusion, I break it down to its simplest meaning for everyone to understand. You need to start this journey of cryptocurrencies, as there is financial gains in it for the long term.
About the Author: Paa Kwesi Menz is a Crypto Portfolio Specialist, blogger, entrepreneur, crypto trader, and coach.
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