It's been a very turbulent week for the cryptocurrency market with losses across the board. What happened and why? The answer to this question and more, in this week's Altcoin report.
In this Edition:
- Market Recap
- What Happened to the Market
- The Future of the Crypto Market
- Crypto Investing Educational Series
- Altcoin Pick
- Private Discord Server
My apologies to my members and subscribers, I've been ill for last week which has resulted in the late publishing of the Altcoin report and member reports.
Over the last week, we have seen the largest drop in the price of Bitcoin, with BTC dropping from $58k to as low as $44k before stabilizing around $50k. At the time of this report, Bitcoin is sitting at $49,891.
What Happened to the Market?
While the massive drop in the price of Bitcoin over the last week has been one of the more significant drops we have seen in recent times, to understand how and why we need to first look at the overall market trend, the market sentiment and then address the issues impacting investor confidence.
To begin to understand the significant drop in Bitcoin over the last week, its important to first look at the BTC trend over the last thirty days.
BTC Price over the last 30 Days
It is not necessary to be a technical analyst to note the almost linear decline in the price of Bitcoin over the last 30 days.
In the last 30 days, Bitcoin has decreased in price by more than 26%. Since Bitcoin is the dominant cryptocurrency (39%), where Bitcoin goes, the rest of the crypto market tends to follow, with Alt's being impacted significantly more. It is anticipated this trend will continue.
BTC Price over the last 90 Days
Viewing the price movement of Bitcoin over the last 90 days, we see what can be described as the distribution phase of a cycle. A distribution phase of a cycle is identified by a period where the bullish sentiment of the previous phase turns into a mixed sentiment.
If so, this phase concludes where the market reverses its direction and classic patterns like head and shoulders, triple tops and inverted cup and handle patterns can be seen.
BTC Price over the last 365 Days
Looking back over the year, we see a similar pattern that took place back over February and March of 2021. This is to say, it looks as though we are in another run-down cycle for the market. While technical analysis can offer some insight, the cryptocurrency market doesn't operate in isolation. It's also prudent to look at the stock market, which is analogous in many ways to the crypto market.
The Stock Market
It's worth noting that the sudden Bitcoin and crypto sell-off which took place occurred alongside significant stock market declines during the same period.
The Future of the Crypto Market?
While I personally believe we will continue to see a decrease in the price of Bitcoin and as consequence, a continued decline in the altcoins, I think it's necessary to remark that rundowns and bear markets are a natural sequence of events, especially after a bull-run, such as we have seen in 2021.
I am still bullish on the Metaverse and Play-to-Earn gaming projects and in the near term, we will be seeing many great new projects enter the market - at a discounted rate. However, to invest in these projects during a bearish market wouldn't be prudent.
While we will still be researching and posting new projects we find, I likely won't be investing in any new projects until there is more clarity around the direction of the market.
During this time we will also be creating more educational content for our subscribers and focusing on offering more value for our community.
New Educational Series
We have a wide breadth of members and a large segment are relatively new to the cryptocurrency space. Given that we are likely heading into a new phase of the market cycle, I will be publishing a series that focuses on the basics, technical analysis, market cycles and content every crypto enthusiast should know before jumping into the market.
Here is the first article in this series:
Altcoin Pick for the Week:
No Altcoin Pick was published this week on account of the overall market downturn. For the month ahead we predict a continued sideways and/or downward movement in the market. We will still be reporting on new projects we find which we believe are gems. However, the Altcoin Pick reports will likely become sparse over the short term.
Regardless of the market cycle, cryptocurrency projects will continue to be developed and we will continue to seek out and publish the gems we find.
Private Discord Server - Coming Soon
We are in the process of setting up a private discord server for our premium members where real-time discussions on the market movements and specific low-cap altcoins can be discussed. It will also offer a platform for members to ask questions and offer a better medium of communication within the community.
Although it will still be a few weeks before the server will be live, if there are any members who would be interested in becoming moderators, please reach out by email to: firstname.lastname@example.org
This site is supported entirely by its members. If you enjoyed this report and would like to support this site and the information we publish, consider joining our private membership to gain access to all the content on the website.
Thanks to all our subscribers and members. Your support is greatly appreciated!
Until next week, hold strong and be legendary.