Normally we generalize when talking about Cryptocurrencies, the “Altcoins” and Bitcoin as if they were all the same.
The lows tend to happen at similar dates but the cycles can be completely different and I will show you this today.
EOSBTC hit an All-Time High April 2018, it has been dropping since.
Now, one can say that the long-term bear market is due to Bitcoins huge growth and price appreciation, that’s true but this world we live in is an interesting place.
There is nothing that prohibits this and other Cryptocurrencies to grow massively even while Bitcoin grows as well or simply consolidates.
There are many scenarios such as hyperinflation that can change completely our understanding of money… Let’s focus on the chart.
While the drop was really strong after April 2018, it has been losing steam and with every passing year, every month and every week, volume continues to drop and the action turns from lower lows to flat and finally a higher low.
Let’s zoom in on this chart.
We have a low on a wick December 2020 and a bottom low June 2022.
In March 2023 we get a higher low and this is the important/interesting part. If a higher high comes next then we have a change of trend.
The current price trades above the December 2020 low which is a signal of strength.
Any trading above this level and the bullish potential is great.
So, this is a valid, good and strong chart setup.
Near the bottom, low/support… Think long-term.
When at the top, resistance/All-Time High… Think short-term and sell.
EOSBTC has been dropping for 5 years, it might go up for 5 years… Nobody knows because these things are new. It would be the first long-term bull market for this and many other Altcoins vs Bitcoin (ALTSBTC) pairs.
We don’t know exactly how it will go, but when you buy at the bottom you get low risk with a high potential for rewards.
I would personally accumulate with a long-term goal in mind but for trading purposes I would use a tight stop-loss.
Let’s make an example, if EOSBTC closes and stays below 0.0003500 I am out.
Any trading above 0.0003500 I am in, long-term.
Once you are happy with the profits, you can sell because the market will continue with its cycles and its waves.
Namaste.
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