Cryptocurrency Update: Are We Entering Another Steep Correction? | Hacked: Hacking Finance
user

Analysis

Cryptocurrency Update: Are We Entering Another Steep Correction?

Posted on .

Cryptocurrency Update: Are We Entering Another Steep Correction?

Introduction

This article was posted on Thursday, 07:58, UTC.

This question probably ran through a lot of traders’ minds yesterday evening and this morning amid the decline in Bitcoin, as the 30% correction in the currency that took place two weeks ago is still a very active memory. The correction dragged altcoins lower as well, so it isn’t a surprise that a lot of investors and traders got nervous.

// -- Discuss and ask questions in our community on Workplace. Don't have an account? Send Jonas Borchgrevink an email -- //

BTC/USD 4-hour Chart Analysis

As we wrote in our previous update a yesterday:

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

BTC is at a very important point as a failed break-out attempt, and a break below the prior high could set up a quick decline towards the dominant trendline at $2500 or the top of the short-term base near $2350.

BTC broke below the prior high since then, and dipped almost until the $2600 level, before rebounding. To put this 10% correction into perspective, it didn’t even violate the previous swing low on the 4-hour chart, which is found just below $2500, so even the short-term uptrend is still intact.

So what’s next? The cryptocurrency is still in an uptrend both short- and long-term, so investors and traders should both be looking for buying opportunities. Ok, but should you buy, hold, or sell right now?

Well, it depends on your time-frame and your strategy.

Long-Term and Short-Term Strategies

BTC/USD Daily Chart Analysis

Is this the best time to buy Bitcoin for the long run? Probably not, even if the fundamentals are there and it will most likely rise much further than the current levels. So, why it is not a good idea to buy it then? Because a 30%-40%-50% correction, that has been normal for Bitcoin in the past, is a huge psychological burden that makes a panic sale likely, usually just before the bottom. Because of this, it is better to wait for the correction (it always comes) and oversold readings, even if you will buy it at a higher price later on.

Of course, not all strategies are binary (either holding an asset or not).There are many long- and short-term investment and trading strategies that can be successful in a roaring bull market like the one that the crypto-coin segment is experiencing, but mixing the time-frames and mixing trading and investing (see our article on the topic) could lead to troubles.

Let’s see some of the possible strategies:

  • Buy and hold, without caring about day-to-day (or even month-month) fluctuations
  • Buy and hold a core position and add on the major dips; a very powerful strategy
  • Buy a certain amount every week or month and even out your entry price, without the hassle of timing the market
  • Try to catch major turning points to reduce and “re-boost” your position
  • Trade short-term movements with stop-losses, targets, and strict risk management (this is trading not investing)

We are providing valuable information for all of these strategies (ICO analyses, short- and long-term recommendations, savings advice, and much more…) no matter which approaches you follow; but choosing your strategy—that is your part.

Stay tuned for our detailed cryptocurrency analysis later on today.

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



Feedback or Requests?

Mate Cser

Mate Cser

Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.

Comments
  • user

    AUTHOR embersburnbrightly

    Posted on 2:00 pm June 8, 2017.

    You must have been reading my mind when you posed these questions, and I very much appreciate your recommendations. This article alone has justified my subscription fee for the month!

  • user

    AUTHOR pradz

    Posted on 8:05 am June 10, 2017.

    Ditto embers !

    and limited funds leads to confusion over which currency to hold core positions and fighting off the need to diversify during a bear week is all too familiar, so this helps in setting goals for achieving short/long gains.

  • View Comments (2) ...
    Navigation
    The team:
    Dmitriy Lavrov
    Analyst
    Dmitriy Lavrov is a professional trader, technical analyst and money manager with 10 years of trading experience. He covers Forex, Commodities and Cryptocurrencies. He is among the top 10 most Read More
    Jonas Borchgrevink
    Founder
    Jonas Borchgrevink is the founder of Hacked.com and CryptoCoinsNews.com. He is a serial entrepreneur, trader and investor. He shares his own personal journey on Hacked.com. // -- Discuss and ask Read More
    Mate Csar
    Analyst
    Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive Read More
    Mati Greenspan
    Analyst
    Senior Market Analyst at Etoro.com. // -- Discuss and ask questions in our community on Workplace. Don't have an account? Send Jonas Borchgrevink an email -- // Important: Never invest Read More
    Rakesh Upadhyay
    Analyst
    Rakesh Upadhyay is a Technical Analyst and Portfolio Consultant for The Summit Group. He has more than a decade of experience as a private trader. His philosophy is to use Read More
    Pamela Meropiali
    Account Manager
    Pamela Meropiali is responsible for users on Hacked.com. // -- Discuss and ask questions in our community on Workplace. Don't have an account? Send Jonas Borchgrevink an email -- // Read More
    Joseph Young
    Journalist
    Joseph Young is a finance and tech journalist & analyst based in Hong Kong. He has worked with leading media and news agencies in the technology and finance industries, offering Read More
    Crytpocurrencies are having a quiet and slightly bearish session, as…