The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
The market data is provided by the HitBTC[1] exchange.
The crypto markets are tumbling, and their total market capitalization is down to $265[2] billion from about $380 billion that we saw May 22. This means that the selling momentum has picked up. After a prolonged downtrend, sharp falls indicate that panic has gripped the investors and they just want to sell at any given level. This seems to be the state of the crypto markets right now.
We were skeptical of the bull run in December[3] and had called for the traders to sell their positions. Did we get the exact top? No. But our general direction and analysis proved to be correct.
Similarly, we believe that the bear run is in its last legs. Can we or in fact anyone pinpoint the bottom? No.
We can only make a calculated prediction about the bottom after careful analysis. The market can easily overshoot on the downside, but after such a large decline, the recovery from the bottom is also likely to be very strong. Hence, we have been advising long-term investors to gradually build positions on weakness. A few other[4] traders are also advising the same for the long-term ‘hodlers.’
If cryptocurrencies were a bad investment, the large institutional players would not be willing to enter the game. Their increasing interest[5] shows that they see long-term value in it. Once they make an entry, prices are unlikely to remain low.
Trading, on the other hand,
