Crypto Market Cap - UnderValued?
In a clear down-trending market like this, long time supporters of blockchain technology still have reason to cheer - picking up their beloved altcoins on the cheap! The total Cryptocurrency Market Capitalization has risen ~26% over the last 3 days. This whopping increase can be attributed to the G20's realization that there are more pressing issues at hand than just cryptocurrencies, so we are just being "monitored".
Even so, the Crypto Market Cap still stands at a miserly $350 Billion. With all things being relative, Facebook is at $488 Billion. This begs the question "Is the crypto market undervalued?".
ETH Day Chart
Here's the day chart for Etherum, which could give an indication of what's ahead.
We saw the meteoric rise of ETH from $400 to $1300+ in just under 2 months. Such parabolic increase always end badly. What followed was a frantic 4-day sell-off to the 0.5 Fibonacci level @$915, before the 2nd wave of selling brought ETH to the 0.786 Fibo level @$620.
Double Bottom-ed
Early February saw a double bottom reversal (region between $570-$620) forming as ETH bounced off the 0.786 once again. Excitement ensued as ETH raced towards $1128, a target price based on the double bottom formation. However, the 3rd (and hopefully final) wave of selling appeared as ETH could not breach the $1000 resistance (psychological level), going as high as $990. Further concerns about the G20's regulation plans forced weak hands to sell to a low of $460 (read: opportunity!).
Yes I bought more STEEM, encouraged by @culgin! Thanks brother.
A Slow Grind
Now we see ETH creeping back up to $570 (as of writing), helped by the positive conclusion from the G20 summit. From a technical perspective, a weekly close above $620 (0.786 Fibo level) would certainly give the crypto market a much needed push. And of course, when the long-term down-trending line is broken @$700 region, this will signal ETH's recovery.
Will ETH be at our target of $1128? I believe so. How long? Your guess/prediction is as good as mine.
Till next time, Steemians!
Disclaimer:
This is my personal view. I am not a financial adviser nor affiliated to any investment advisory. Your decisions are yours and yours alone. Do not listen to hear-say. Do Your Own Research (DYOR).
Awesome first post bro! I'm sure you will not regret getting STEEM.
Thanks bro. STEEM is a HODL rain or shine!
Good Read!
Thanks @hannah5 & remember to buy more STEEM!
I think that the crypto markets, in general, are still undervalued as most of the people still don't know about cryptocurrencies. Grats on your first post and buying a lot of STEEM. Upvoted!
Yes bro the crypto market is definitely in its infancy, considering the numerous applications that block-chain has to offer. Thanks for being an avid supporter of this technology and STEEM!
How I wish I can read and understand how the graph works just like the way you explained it, but I do find all the terminologies hard to absorb in mind. Maybe because I not really good in understanding financial graph. ;)
Bro if you are interested to learn more about technical analysis, here's the link to the courses. Could start from Elementary. Cheers bro!
Wow the link is so amazing... Very zero based learning. I already bookmarked it and I think that will keep me busy maybe for a week. Thanks for sharing bro! ;)