CEDEX: Cryptocurrency Market Bottom

When will the Crypto Bottom Happen?

As this cryptocurrency bear market continues, many have started to wonder… when will the bottom happen? A common saying in the trading world is “Trend is your friend until it’s not.”

Over the past week, Bitcoin has risen around 15% from $3700 to $4200. While this by no means signifies a bottom, it’s one of the largest signs of strength we’ve seen in a while. Bitcoin is typically the leading cryptocurrency in terms of price action, so this large move followed by an altcoin rally would be a fantastic sign.

Market bottoms can take a long time to happen. Below is a historical chart of gold vs the US dollar over time. Look familiar? It should, as Bitcoin and the entirety of the cryptocurrency market have done this pattern several times over. Gold’s price spike in the 1980s took over 20 years to completely bottom out before reaching much higher highs.

As you can see in gold’s case, catching the exact market bottom can be extremely difficult. They can take a long time, and when they do occur, they are typically quick and violent. There are a few ways you can apply this knowledge to the current cryptocurrency market. We already see some smart traders doing this now by looking at the order book on several large exchanges.

Here we have the Bitfinex BTC/USD order book. Behind the text, there is a helpful illustration showing the “depth” of the buying and selling on Bitfinex. Take a look at how many orders are around the $2,700 to $2,800 area. This should provide an enormous amount of support should the price fall to that area.

When the exact bottom happens, it will most likely be quick. A good way to prepare would be by placing some low orders. Worst case scenario, they don’t get filled and Bitcoin continues to rise! Overall, one of the best ways to get the asset of your choice for the best price is to cost average in. Trading can be extremely difficult and is not for everyone.

Do you think the bottom is in for cryptocurrencies? Let us know in the comment section below.

Disclaimer: This article is not meant to constitute trading or investment advice. Take caution when performing trades and always do your own due diligence.

Original article was created by: CEDEX at medium.com

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency or ICO.

Interested in Cryptocurrencies and ICO's?

Follow our telegram channel for daily cryptomarket reports!

Join @cointrends

Related Articles

pubDate Newsline

Stay on top of Altcoins and ICO trends.

Subscribe to our free Weekly Cryptomarket report

Delivered once a week, strongly to your inbox.

Subscribe to our mailing list
January 10, 2019
January 09, 2019

CEDEX Weekly Crypto Report 9.1.19

CEDEX Weekly Crypto Report 9.1.19CEDEXJan 9Interesting News Highlights On Cryptocurrency Last Week:Georgia State Senator Reports to Jail Over Alleged Theft of Crypto Mining Equipment:Republican state senator of Georgia has reported to jail in the United States for allegedly lying about the...

January 02, 2019

CEDEX Weekly Crypto Report 2.1.19

CEDEX Weekly Crypto Report 2.1.19CEDEXJan 2Interesting News Highlights On Cryptocurrency Last Week:Nvidia Faces Class Action Lawsuit Over Losses After Lower GPU Mining Demand: Graphics processing unit (GPU) producer Nvidia is currently facing a class action lawsuit over losses that the...

December 31, 2018

What We Learned From the 2018 Bear Market

What We Learned From the 2018 Bear MarketCEDEXDec 31, 2018As we are coming up on the one year anniversary of the all time high of cryptocurrency markets, we should take the time to look back at what we’ve learned during 2018, and what to look forward to in 2019.The Power of Community...

December 24, 2018

Why Bother with Security Tokens?

Why Bother with Security Tokens?CEDEXDec 24, 2018When most people think of cryptocurrencies, what often comes to mind are major coins such as Bitcoin and Ethereum. However, there is another exciting classification known as security tokens, that are becoming increasingly popular in the...

December 20, 2018

How to Stay Alive in a Bear Market

How to Stay Alive in a Bear MarketCEDEXDec 20, 2018As the cryptocurrency bear market continues, many have looked towards other markets for potential gains. However, traditional stock markets are fairing a somewhat identical fate to cryptocurrencies over the past few months. The DJI (Dow Jones...

Upcoming ICO's
This week overview
Token Name Starts
Cryptocurrency rates
*Last hour average price&change
Coin Name Price Hour
Bitcoin logo BTC $3730.0631732 -0.05%
Ripple logo XRP $0.3302440119 -0.08%
Ethereum logo ETH $124.186906193 -0.25%
Bitcoin Cash logo BCH $129.591324139 -0.01%
EOS logo EOS $2.4757391616 -0.11%
Stellar logo XLM $0.1082222286 0.13%
Tether logo USDT $1.0154463834 -0.1%
Litecoin logo LTC $33.1894592385 0.53%
Tronix logo TRX $0.0245195064 -0.23%
Cardano logo ADA $0.0454854619 -0.1%
IOTA logo IOT $0.3177856704 -0.76%
Binance Coin logo BNB $6.6972524605 0.14%