Good Day Digital Assets Investors,
This is the very first post , yet another blog dedicated to the crypto world, you may think while reading. What will Crypto Financial Services bring out to an overly crowded market of Crypto analysis publications that is not already available?
Well, first and foremost we understand that our most valuable asset is you, our future audience, and it is with your help we hope to shape the future of our website. We aim to constantly seek feedback to improve and evolve Dalu.digital, whilst identifying opportunities to help you navigate the current crypto market. Especially during the times when price volatility exceeds what are considered normal daily moves. It is right at this time that we trust we can provide an added value to our readers.
And it is throughout a combination of Technical, Fundamental and Behavioral Analysis that our team at Dalu.digital aims to shed some light on the Crypto Market.
The herd mentality is alive and well in the current Crypto Market. The dramatic swings in the market in the last month took many investors by surprise. Is the bull market finally coming to an end? Will the fear over the break of 40,000 price level in Bitcoin lead to a panic sell-off?
These seem to be the questions that are the most recurring in the last week and I hope I will not disappoint you with the answer as it is not our intention. The purpose of our analysis is to give a totally emotionless view on the market and help you navigate safely through it.
Is the bull market finally coming to an end?
As described in the Technical Analysis section we believe that the Crypto market has entered a Bear Trend after the top levels hit in November 2021. Awkwardly enough there are some striking similarities with the Bitcoin price in 2017 as in December of that year Bitcoin hit its all-time highs before heading south until end 2018.
Although It is way too early to assess how long the Bear Market will last and how far it will go, the technical picture of BTCUSD and the indicators we commonly use provide us with sufficient information to spot the critical levels and forecast possible targets. Dalu.Digital team will make it its mission to make this information publicly available.
Will the fear over the break of 40,000 price level in Bitcoin lead to a panic sell-off?
The last drop of BTCUSD came to a stop at 40,000 where we have seen some heavy buying interest. This level is not only a psychological support which generally is associated with round numbers, but it is also a long term trendline that has been holding BTCUSD bull run since January 2019.
This is sufficient to underline the importance of the level and somehow already answers to the question: a break of such an important level will certainly be followed by a wave of sales and as the price will drop the fear factor will rise considerably. Given that BTC has already lost 27,000 since November top and that most investors are still holding long positions, a drop below 40,000 will have excessive impact on one’s portfolio.
And as outlined in our Technical Analysis section the break of 40,000 opens the door to a scary target of 14,000$ per Bitcoin, with a major support in between that lies around 28,000 and 30,000. Which was the July 2021 low, hit after the “Sell in May & Go Away” action that often follows a strong market rising all through the first 3 or 4 months of the year. Since 2021 was the year that professionals adopted the Crypto Market, Bitcoin in turn adopted the cycles and many habits that are typical of traditional financial markets.
What should we do in the current market? Change? Stay the same? Get out? Wait?
We will share our thoughts on the subject and would welcome your thoughts. If you become a regular reader of Crypto Financial Services we promise that we’ll dig a little deeper into the subject and discuss the options.