The history of markets is often cyclical
Hello dear community of Hive in general, I feel happy, I suppose that many of you, it seems to be a very good moment for the cryptocurrencies world, at least for Bitcoin (BTC) and some Altcoin that are seeing a considerable increase in price, and wow this month has been only of ascent for the BTC, it has passed from 12.000 to 18.123 dollars for the moment in which I am writing this publication...
Are we going to new historic prices?
- However, although I believe this project is a medium to long term investment, it is at these moments where the emotion of the moment can make some people lose money or simply take time to recover their capital.*
It reminds me of the moment I arrived to the crypto world, end of 2017 when BTC imposed its highest price, are we on our way to a new historic? if so, welcome, but, something that makes me think a little is that after the impressive rise that attracted so many to the crypto-world with the intention of taking advantage of such an event, after a few weeks, in 2017 the vision of the matter was different, the price of BTC fell almost 70%... Do you remember? I do, something happened that is known in the financial world as Blow-Off Top, do you know what it is? don't worry, I'm going to explain it below...
Let's start by defining what it is:
"A blow-off top is a chart pattern that shows a steep and rapid increase in a security’s price and trading volume followed by a steep and rapid drop in price usually on significant or high volume as well. The rapid changes indicated by a blow-off top, also called a blow-off move or exhaustion move, can be the result of actual news or pure speculation." Source
I think the concept is self-explanatory, however, I would like to make a few comments about it.
Generally the movements in the crypto market are followed by these big increases of consolidation processes, that is to say, there is a decrease of the prices (that remains low for some time) and later it goes up again, but in this case, the increase of the price of the BTC has been almost continuous, there have been few corrections and of short duration, of course, I understand that this is what the volatility of the market is about and although there are people who lose or could lose money, there are also those who are making a great profit...The markets are like that, not everybody can win or lose.
There has also been a big increase in market capitalization, that is, the amount of money circulating in the cryptocurrency market, most of it in the form of BTC, which speaks of a belief in this project, and that is very good.
However, be careful, especially those who are just entering this world, if they enter a high historical price, it may then go down and take some time to get back to the same price, especially those who expect quick profits, we must remember that this is not a speed race but a long distance race . Patience.
For my part I clarify, I am not a specialist in the subject, but if a passionate about it, this is not financial advice, I am not saying invest or stop investing, but if you wanted to share some personal opinions about it.
I'd like to know what you think about it.
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Some investments are zero-sum games, where the winners can only earn what others are losing. Others, are non-zero-sum games, however. For example, the stock markets: There the companies are producing value, the full market grows with the economy. The total wealth of all investors is increasing in the long term.
https://en.wikipedia.org/wiki/Zero-sum_game
Hi @deathcross
This is necessary to understand, very necessary. To think that everything will happen very quickly, I think that is what makes many lose. Thank you for commenting.
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They are usually cyclical but they always start at a point and that point can be the weakness and the breaking point, I also remember that time of 2017 I also entered and began in this cryptographic world.
@tipu curate
Upvoted 👌 (Mana: 28/112) Liquid rewards.
Knowing exactly if it's a starting point to win or if it's a breaking point, I think that's where the trick is, to play to win.
Thank you for support
Good article, it is possible that due to the confinement that people suffer everything that has to do with the web increase its value is possible that more people are using and earning coins so the rise is now possible, on the other hand it is possible that the price reaches a point of inflation to create a new bubble as in 2017.
Everything is possible, just to know how to play this game to leave with the least collateral damage, and rather than be gain.
Everyone has to understand that this market is like life: it has ups and downs (and we need to deal with them all).
Great post, @josevas217.
Yes, you are right @wiseagent, in the end the market is like life, it is made by humans who interact indirectly with each other.
Greetings @josevas217.
I have a feeling that the pattern will repeat itself, since it is part of the healthy behavior of the markets. Now, the BTC has never had a downward trend, and that is something that worries me, because when I correct it, I will do it in a resounding way.
Yes, going up so much and so fast I don't think it's very healthy in the long term, at this moment you have to be cautious, otherwise you can end up losing. I'm sure there will be many people who will do that.
Me alegro por quienes hayan hecho inversiones.
Gracias por compartir, @josevas217
Apoyando el Top3
Gracias por el apoyo.
♥♥♥
Amigo José como dices: "Los mercados son así, no todo el mundo puede ganar o perder". Considero que hay que arriesgarse a invertir. Por supuesto con cautela.
La clave para minimizar riesgos (no eliminando los nunca por completo, porque es imposible) es estudiar bien los proyectos, sin duda. Gracias por comentar.
Hi friend @josevas217 I am really excited about this bitcoin upload. I think that those of us who invest in it can generate great profits in these times. But as you say it is a very volatile market and at any time the currency can turn!
It looks like a king of russian roulette, but you have to be patient to have benefits
Certainly we can find cyclical processes in the markets, but almost always they do not return to the same point, there is usually a phase of expansion that is followed by another contraction, followed in turn by expansion and so on. I think something similar has been seen with Bitcoin.
yes @emilionoron
That's really what happens, it's a cycle that you have to study well to make benefits, because if you can.
Interesting reading, my friend, has been for me that of this post. The only difference I see from the price increase of the BTC when it occurred in 2017 compared to the one you are experiencing now is that in 2017 the BTC increase was parallel to the increase of the SBD which reached $14.
On the other hand, I see that BTC is currently experiencing the increase you are talking about, but cryptomonies such as hive, hivedollars, steem and steemdollars still remain at very low prices. I imagine that this is due to the fact that the factors that are driving up the price of BTC are very different from those of 2017.
Greetings to my dear friend @josevas217 for this educational post in the order of cryptom currencies and the rise in the price of the BTC.