Healthy Correction in Bitcoin

The market has been buying the rumor that the spot Bitcoin ETFs to be launched. Though there were future ETFs, the spot purchases and offers by the giants institutions mean a lot more than the future contracts.

With the launch of the Spot Bitcoin ETFs, we can clearly assert that Bitcoin has a place in the global markets. Even if some people underestimate it by claiming that it is just a " virtual " internet money that is used for gambling and adrenaline, the majority is aware of the reality that the blockchain technology has the potential to renew all old - school, so do old fashion, things in the existing system.

After the harsh stress - test that we faced, eventually the spot ETFs came true. Now, our focus is directed from the hype vs uncertainties on the ETFs to the projected performance of these new products. A lot of experts and economists approach it quite positively and their basic expectation is to see slowly but firmly increase in the volume of the ETFs. Besides, the race between the service providers over the fees can also have a direct impact on the mass - adoption of ETFs.

As you know, it is easy for you and me to take a position by purchasing ETFs but the hedge funds cannot just allocate $1 - $2 million dollars, their moves are massive but the crypto ecosystem is too tiny to host their massive purchases.

Corrections Always Happen

I see the desperate stance on the crypto ecosystem even though we have been in an uptrend for 3 months. The expectation of a minority group was to test the latest all time high level with the debut of spot Bitcoin ETfs. Unfortunately, the issued ETFs are only purchased by the retail investors and we may not be able to see the giant institutions or hedge funds carry spot Bitcoin ETFs while the market is pretty shallow.

Every correction is also an opportunity to host new investors. Remember the fact that people do not want to jump into an investment while it is going exponentially with long green candles. We need red days to welcome new investors and let the current holders take some profit.

If we look at the performance in the last 5 months, there have been limited opportunities for new investors to jump into Bitcoin. Similarly, when we consider the performance of AVAX, SOL, TIA and RNDR, it was almost impossible to embark on the train to go up with the others.

Technical Overview of Bitcoin

The news is not good in terms of the technical analysis of Bitcoin chart.

Obviously, we lost a channel, to be honest we got rejected from the upper band, and Bitcoin has entered the wide channel that we were already in before the spike up to $49K.

The current channel we are in tries to break above to open the door to $52K. Yet, I think crypto has run out of the narratives (Halving does not have a perfect pre - halving period historically) and the data from the U.S. terrified the markets already.

Eventually, the crypto market is red and cautious these days. It might be a good idea to take some profit from $47K - $48K but the market may be able to recover and gain the levels again. We need to see the next 2 weeks to make a decision.

Briefly, the corrections are healthy unless we get into a bear market. Each time we experience a correction period, we grow the number of new investors before the mega bull market. So, without fear or greed, watching the market closely can be the best thing to do for now.

How do you manage your portfolio in correction periods?

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Hive On ✌️

Posted Using InLeo Alpha