Correction or a ‘POP’ To Crypto for Christmas
Today has seen one of the worse RED days in the crypto available on eToro for a short while.
Here I will try to answer if it is just a heavy correction or are we seeing a POP to the crypto bubble.
The following charts are the 1hr and the 1 Day charts.
Let’s go into the 1hr one first.
As we can see the overall correction has... for the time being slowed down and even started to reverse in the crypto market.
However please note that this may only be a short stop off on the road to another correction. This could quite easily and more likely a bull trap.
The orders that have activated on $xrp and $ltc today I will be keeping open as they are showing quite heavy green at the moment.
At times like these I long for the SL in Etoro as I would have run a tighter Stop loss to prevent such a heavy drawdown. I am seriously considering reducing my holdings in crypto on eToro because of this and focussing on more stock trades and expanding into commodities (I will go into this further next year).
If the trend lines continue to be broken and there is not a double dip correction then we should see fairly postive movement in the beginning of next year if not sooner and by the end of this year.
Next onto the day chart. This I have included to point out the HUGE gains all the crypto have seen so far this month!
What goes up can invariably come down....
Things to note;
BTC has been in a downward channel far longer than the other crypto on the daily chart and is most likely the result of,
The new found wealth that has been flooding the market in the personal investor market spreading out towards the other crypto (ergo the others taking longer to correct today)
The institutional investors SHORTING BTC, shaking a bit of confidence. This I believe isn’t instrumental in todays correction. But does contribute to it.
Thirdly, this is a natural cycle of huge gains seeing a correction cycle followed by consolidation and return to and upward channel.
XRP, it seems at least on the day chart that XRP is starting to beat its own drum.
Yes in the late hours of last night it saw a pump for the twitter effect of the Q&A session, but taking that out and factoring the rapid return to an upward channel this crypto has set itself more apart from the others.
*For this reason, along with many others, I will be keeping XRP as one of my favourites.
All in all I believe that there is not much to worry about. We have seen corrective phases like this in the past and have seen gains fairly quickly afterwards.
This does not mean that the correction is over, but the charts at least show that it has paused to at least take a breath.
The publicity along with the growing ease of attaining a stake in BTC will only help to boost the value and stability as the more different people own it the less likely it is to be manipulated.
*personal note, nothing in the trading world is ever truly free of manipulation. The scientific fact of ‘Just by observing something changes the way it behaves’ does ring true in the trading world.