Traders love volatility and the volatility seen, as of late, in the cryptocurrency world, has been evident from Ethereum to Bitcoin. This volatility is a double edged sword. Price swings can go either way and you, as a trader, can book profits if they can catch one of these swings at the right time. If the trader misses, and their timing is off, or they misjudge the prevailing winds, they can see some pretty steep losses, as well.
One thing that traders of cryptocurrencies should always be aware of, there is always some form of negative news flow, but even that doesn’t deter. Cryptocurrencies still attract investors.
Buyers should be very aware of what trading in a new market brings and at time must sit back and acknowledge these risks while being very cautious. The chief trader at Ayondo, Jordan Hiscott, in a recent note said that “certainly the halcyon days of performance gains [for Bitcoin] from 2017 seem long gone.”
Last week, on Tuesday, bitcoin moved lower early on. The digital coin was trading near the level at $7,900. This was way down from this year’s high price point at $13,275. Hiscott’s view is that the situation around the week price level for bitcoin could last for “at least six months.”
Potentially there is a lot of Room for Recovery in Bitcoin Alone
Volume wise, things have been a bit low, which means, according to Hiscott, there are about three times that amount of bitcoin that has yet to hit the market. At least potentially. “With this kind of volume yet to surface, in my view, prices on Bitcoin will remain depressed until this situation has been resolved,” Hiscott wrote.
The wild run on the cryptocurrency universe started late last year. Many investors, who came in late when prices were at all-time highs, were battered hard. When the recent market correction began in February, prices tanked lower just as they entered the market. This was a big shock for those who bought digital coins like bitcoin and other alt coins like Litecoin.
Bitcoin hit its all-time high just north of $19,000 in December 2017. There was a feeding frenzy in November which saw its value nearly quadruple from the November 12 price of $5,857.32. Bitcoin then retreated from that all-time high to a price low of $6,500 on April 1. That represents a decline of 65 percent in a matter of fifteen weeks.
Ethereum price action was similar. Its price, on April 1 was at $366. This was down from its January 14 peak at $1,330. It hit that high price point on January 14. Other alt coins like Bitcoin Cash, Ripple and Litecoin all have similar stories.
The cryptocurrency universe, is still new but it has the potential to make a lot of money for investors. It still makes significant money, even now, and, as long as this continues to occur, investors, from all over will flock to the cryptocurrency world. Just with eyes wide open.