Cryptocurrencies are falling. Help, what to do now, sell everything? This is one of the recurring questions we get from subscribers in our blockchain investing service, and InvestingHaven’s research team educates and assists subscribers in how to look at this retracement, how to control emotions, and stay focused on the really important things that matter.
One of the key indicators to gauge the ongoing bull market in cryptocurrencies is the chart of the 8 largest cryptocurrencies. It includes Bitcoin, Ethereum, Ripple, Litecoin, Bitcoin Cash, Dash, NEO and NEM.
As shown on the chart below the 3 month chart looks amazing. Chart-wise there is an extremely important support line which we annotated on the chart (dark purple, lowest line).
What this tells us is simple.
First, cryptocurrencies respect chart analysis like clockwork. We have said and shown repeatedly how resistance and support lines are leading, for instance in Why Ripple’s Chart Continues to Look Awesomeor Why 125 USD Is Critical To Ethereum’s Bull Market.
Second, current prices respect both a long term and short term uptrend. Up until today cryptocurrencies are strongly bullish even if some of them lost 70 percent since they peaked last December.
Third, in case cryptoccurencies go lower from here we have to zoom out and look into the longer term price charts. There is strong support on lower price levels. Even at lower prices cryptocurrencies are still in a strong long term bull market.
These reasons reiterate the need to stick to the things that really matter for investors. Too often do we hear that investors sold during a crash or did not take profits during a strong rally. That is because their focus is on the wrong things (news, as an example, which are worthless from an investor perspective but are great from a sell-as-many-banner-views-as-possible perspective). Similarly, controling emotions are a key success factor. Both, combined, determine the level of profitability. blockchain investing service
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