2017 brought incredible popularity to cryptocurrencies and the market now contains a lot more people prone to 'fear of missing out' and panic selling. As a result the chances of a currency finding price stability at the end of a consolidation are slim, so as price amplitude gets narrow it tends to drop (or shoot up) and enter yet another consolidation pattern. In situations like this, professional traders with large accounts can wait for the price to drop as amateur traders (understandably, and perhaps sensibly) jump in on the panic selling.
Luckily, I sold all my coins the day before this big fall began. I did this because, following the rises of 2017, several major cryptocurrencies had been consolidating in a similar way to that of Bitcoin seen in the chart above. I could have lost out had prices broke from the consolidation triangle in an upward direction, but the cryptomarket as a whole was coiling for something and I could not call which way it was heading and the signs hinted at a breakout downwards, so I preferred to pull out and watched. Currently, those major cryptocurrencies are now experiencing similar downward repeated consolidation patterns (example can be seen in my linked chart (BTCUSD: Here we go again...). Now, for me, it is worth riding some of the waves in these consolidation patterns and waiting for the bottom of this long fall to appear. The ultimate bounce back up from a drop such as this will likely be very nice.
A good example of a rise followed by a fall is in the SHCOMP chart between 2014 and 2016, as pointed out by tntsunrise in his post: 'BTCUSD don't chase high'
What to do now? As Warren Buffett might say, "Buy when others are selling". Though perhaps in the World of cyrptocurrency it is safer to, "buy when others have finished selling".
I posted this in education, but I am not teaching; I am learning.
Luckily, I sold all my coins the day before this big fall began. I did this because, following the rises of 2017, several major cryptocurrencies had been consolidating in a similar way to that of Bitcoin seen in the chart above. I could have lost out had prices broke from the consolidation triangle in an upward direction, but the cryptomarket as a whole was coiling for something and I could not call which way it was heading and the signs hinted at a breakout downwards, so I preferred to pull out and watched. Currently, those major cryptocurrencies are now experiencing similar downward repeated consolidation patterns (example can be seen in my linked chart (BTCUSD: Here we go again...). Now, for me, it is worth riding some of the waves in these consolidation patterns and waiting for the bottom of this long fall to appear. The ultimate bounce back up from a drop such as this will likely be very nice.
A good example of a rise followed by a fall is in the SHCOMP chart between 2014 and 2016, as pointed out by tntsunrise in his post: 'BTCUSD don't chase high'
What to do now? As Warren Buffett might say, "Buy when others are selling". Though perhaps in the World of cyrptocurrency it is safer to, "buy when others have finished selling".
I posted this in education, but I am not teaching; I am learning.
