I gotta admit, I'm tired of looking at red candlesticks! I have tried adjusting the color on my computer because I haven't seen the color green in days, but alas my laptop seems to be in perfect working order.
What Do I Do Now?
In the trading world, you always have three choices: Buy, Sell or Hold. In simplest terms, that's it. Oh, you have a myriad of choices in what to buy sell or hold, but assuming you are in Bitcoin only, these are your options.
Earlier this year we saw BTC rise from under $1000 to over $3000 in the span of a few months. You were in a forest of green candles and if you got into the crypto world during this time as many did, you were saying to yourself "Gee, this is easy!", but over the past few weeks, you have witnessed the dark side of the market. Here is a chart courtesy of Coinbase that gives a look over the past week.
Not too pretty is it? Let's talk about perspective. Sitting too close to a movie theater screen does not always give you the best view, the picture looks distorted and it is difficult to see the full picture. Here is BTC as it performed over the past 3 months:
Looking better isn't it? Now let's have a look from the vantage point of 1 year:
Wow! So the lumps we have been taking these past weeks are really nothing more than consolidation bumps in the road. We saw a huge run up earlier this year, but BTC has really held on to the majority of those gains. There has been some profit taking from those who were along for the ride, but to be holding at over $2000 is a pretty nice place to be when you consider where the year started.
My belief is the market is a little jittery over the Segregated Witness (SegWit) coming to Bitcoin on August 1st. No one really wants to take the market in either direction until this hurdle is crossed. There is a great article on the subject that you can read here: https://bitcoinmagazine.com/articles/countdown-segwit-these-are-dates-keep-eye/
So going back to our 3 choices, I am holding for now. The more aggressive traders that are confident in the upcoming success of SegWit may want to buy, but I tend to be slightly more cautious and I frankly don't know enough about the changes to make an educated decision on the matter. No one really knows what will happen until it goes live.
Hold on, and here is to lots of green candlesticks in your future!
