Being relatively new to the cryptocurrency markets I have always wondered if I started too late? And the answer is no, the technology isn't going anywhere a matter of fact it is just getting started. The fact remains though that the market is overbought. And needs some room to grow. Right?
So in answer to the question posed by my title... Is The Sky Falling? No, not now, but it will. It might be a quick visit downward (like on 7-10 and 9-11) or an extended downward trend (2013-2015). The truth is we do not know anymore than what the charts are indicating. I personally would not buy at our current prices to invest long term. Much of our current price increase is due to what I call "Fork Envy", folks just buying up BTC to get an equivalent amount of BTG . Allot of our current gains are not instigated by new money entering the markets but from folks closing positions on Alts to add to their BTC positions. It is not a bad strategy, you better believe I have Fork Envy! This newly made BTG will possibly end up right back into BTC further driving the prices up. But will it be sustainable? Is it all artificial gains? What does it all mean?!
I have no definite idea! Let me know what you all think? Volatile times we live in...Good luck.
Keep the Stop Loss tight,
But in all seriousness, I hope you all did keep your stoplosses tight and did not invest at yesterday's highs as my post warned. We are currently in a downtrend. The RSI has crossed over into bear territory, meaning it is now using the 20-30 range as support and the 55-65 level as resistance (Indicated on the above chart as the two red lined areas). When the RSI is using the 40-50 range as support and the 80-90 level as resistance the market in an uptrend. Trend lines and RSI are the basics of technical analysis. Anyone else learning I recommend starting here and for more experienced folks I recommend reading Technical Analysis for the Trading professional.
But do not fear all! Money can be made in abundance in all markets. Nothing will go straight up or down. I do not recommend it in this market but you can always trade off of the ups and downs. watch for a good entry point.
And keep an eye on the trend and RSI for a possible reversal of the current trend. Good luck!
Keep the Stop Loss tight,
The 1 hour and 5m chart RSI may have gained some support after briefly crossing under 40 bearish support levels. The 4 hour timeframe is just now testing the the top of the 50. The 1 day 1 week and 1 month are all still pretty high. All in all it may just be a temporary blip.
Never forget to include multiple timeframes in your analysis to better see market behaviour from different angles and short term vs long term stances. Let me know what you all think.