Key Takeaways
- Why I’m not worried about deflated crypto prices…
- The benefits of sticking out these tough times…
- Want my #1 crypto pick for January? See what I have to say TODAY, at 1 p.m. Eastern!
Hey, all. Matt here!
Remember the crypto winter?
After bitcoin’s (BTC) huge spike in 2017, the coin traded sideways for three years until it EXPLODED at the end of 2020 and beginning of 2021…
It peaked at $61,000 and fell back to $31,000 within three months. Then bounced back to set a new high at $69,000 in November.
Now it’s down to $43,000 and some HODLers are getting nervous. Bitcoin isn’t the only crypto that’s down, either. But guess what?
For disciplined traders, the crypto crash is a gift. This could be a five-star trading opportunity.
The crash hurts if you’re holding … but there may be light at the end of the tunnel.
Here’s why…
Deflated Prices = Buying Opportunities
Buy. The. Freaking. Dip.
Let me clarify. Just because a coin’s (or stock’s) price drops, that doesn’t necessarily mean it’s time to buy.
Anyone who “bought the dip” on Dogecoin since May, or Shiba Inu since October, probably lost a good chunk of change…
That being said, for observant traders, these dips can be signals of an impending bounce. An amazing swing trading opportunity could be right around the corner.
Remember that huge crypto runs come in waves. Certain coins book all of their gains in a few months.
The key is to be positioned correctly when the bounce is in its early stages.
Just like the stock market, some pumpers have pulled out of crypto, opening the floodgates for a fall. But the long-term believers are still keeping the ship afloat.
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Not everyone will win … Some coins never bounce back. So always be ready to cut losses.
A struggling market like this can give you the opportunity to jump back on the wave before it builds higher.
A Little Momentum Goes a Long Way
Crypto is quiet now. But when it inevitably starts spiking again, the volume will return.
That creates a little momentum which turns into a little more, then a little more, then … Boom! You get the crazy triple-digit runs that we saw in 2021.
While I like trading smaller, lesser-known coins, I like to use bitcoin and ethereum as gauges of overall market sentiment. Even though ethereum has held up better than bitcoin in recent months, it’s still struggled lately.
Like the stock market, it seems as though the crypto market is intensely watching how the Federal Reserve handles inflation in the coming months.
Both had solid days yesterday, but I’d keep an eye on the $2,800 level for ETH and $37.5K for BTC. If they fall any further than that, we may not see a big run until late spring or early summer…
Conclusion
The shakiness of the crypto market is exhausting, but that’s what makes it fun … right?
I think so.
We’ve seen time and time again what these coins can do when the conditions are right. It’s not always easy to predict WHEN those times will come, but it’s clear that dips like this can make for great opportunities.
As always, stay safe. Study the markets.
To the moon,
Matt Monaco