Are we in a trough, bear market or other situation? | Via CryptoQuestion | Capital | June 2021
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This is a question in the minds of many cryptocurrency investors.
If we must indulge our own questions, we will have to answer that it is too early. The average length of the bear market is 289 days or 10 months, although the crypto winter lasted for several years. However, in the next few months, we do seem to experience ups and downs. A clear sign is that Bitcoin’s price forecast is as low as $16,000, and opponents get more coverage than optimists. Gone are the days of Bitcoin price predictions of $100,000 and $500,000.
Another sign comes from something called the “fear and greed index.” As the name suggests, the index measures the fear and greed inherent in the crypto market. Its value ranges from 0 to 100, with a value of zero indicating “extreme fear”. Last month, the “greed” index was green with a score of 73. Last week, the index was 20, representing extreme fear, and this week it dropped to 13.
These signs indicate that market sentiment is at a very low level. So is it really too early to judge whether we are in a bear market or a more attractive trough? I’m sorry to have to tell you that the answer is not satisfactory. No one has any clues.
There may be two situations. The first is that the market will find a comfortable bottom, growth will resume, and continue along the path of the bull market, starting in May 2020. The second scenario is that the market will continue to spiral downward for a period of time. The fact is that no one knows which way the market will go, not even Elon Musk.
Who is talking nonsense?
When you consider that after the Bitcoin halving in May 2020, the price of Bitcoin rose to $9,999 and the bull market started, while the price of Ethereum was at $188 at the time, you can’t help asking yourself, what’s the fuss about this?
I saw a post on Twitter this morning saying, “What caused these declines?” The reality is, who cares…
This novice investor did not grasp the point. Do you think Warren Buffett checks his stock price every day? the answer is negative. He focused on what was in front of him. He made a long-term decision and believed that he would take care of himself in the future. It usually will.
We must adopt the same attitude. If we believe that cryptocurrency is the future, then we must make long-term investment decisions, which means buying quality projects with fundamentals. Then, you are no longer interested in the unpredictability of the market, and more concerned with ensuring that you invest in the best projects. If you are taking another investment approach to invest in items that can be classified as fashionable, such as the memecoin boom we are now experiencing, then I can understand why you should check your portfolio every minute. If you make money according to this strategy, I am happy for you. But don’t deceive yourself, you are not fully invested in the future Web 3.0 that many of us think. If you think that the blockchain will replace the Internet, then the decline or bear market has nothing to do with you. As they said, quality always surfaced in the end.
Look on the positive side
We are in a much better position than early investors in 2018. Don’t forget that Bitcoin was as low as $3,100 at the time. However, the future is not Bitcoin. Bitcoin is the first issue of 10. Bitcoin’s dominance has dropped to 40%, and there is still a long way to go. It has recently been described as AOL in the early days of the Internet. We think they are correct. The future is altcoins. Investors with foresight to invest in altcoins are in the right place, because Amazon, Google, and Facebook in the Web 3.0 world have not been discovered yet. Or, if they have, there is still time to act.
The arrow on the back is the trailblazer. It will not be smooth sailing, but investing in altcoins is still only a few games. A lot of money is still to be made.
We must ignore market fluctuations as much as possible and focus on purchasing quality projects that we believe are solving real-world problems. Avoid using the metoo project and memecoin. Focus on the famous inspirational quotes of Baron Rothschild,
“Buy when there is blood on the street, even if the blood is your own.”
This means buying quality assets that are lower than their true value. A quick glance at many leading crypto projects shows that their value is well below historical highs. If you are confident in these items, now is the time to buy.
Here are some quick examples of quality items, comparing their current prices to the highest prices in history:
- Ethereum -45%
- Sita -47%
- Associate -57%
- Matick -49%
- point -59%
- make up -65%
It is described as one of the most valuable resources in the field of altcoin investment. We totally agree.Download your free mini cap watch list from our website Here Receive it in your inbox every Friday.
The important question is not whether we are in a down or bear market, but whether we have invested in high-quality projects at realistic valuations? The winner is still to be decided. It is likely that in a few years, Bitcoin will no longer be the most valuable cryptocurrency. It is entirely possible that other chains will succeed Ethereum, or at least provide a viable alternative. The winners will be those who accept mainstream adoption options to focus on easy-to-understand user interfaces. Ordinary people are scared away by DEX and various DeFi applications. As technology advances and developers begin to listen to marketers, rather than the other way around, this situation will change.
The winner will be a project that embraces the mass market. When Aunt Polly can bypass Uniswap without pulling her hair, this will be a strong indicator of our arrival. But at the same time, this is a good time to look for projects that can achieve this breakthrough. They are still outside.
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This article does not constitute any financial advice or purchase advice. Always do your own research and never invest more than you can afford to lose. Investing in cryptocurrency has high risks and you may lose 100% of your investment. This article should be considered as supplementary information to add to your existing knowledge.