Falling Cryptocurrencies - Where Is The Bottom & When Should I Invest?

Note: If You Want Advice On Any Cryptocurrency (when to invest)
Just ask me in the comments below.

Cryptocurrency Synopsis

Cryptocurrencies have taken the financial markets by storm - in fact, it has not only caught the eyes of wealthy investors such as Elon Musk, JP Morgan and Richard Branson but also it has had a momentous effect on 100's and 1000's of everyday people from all across the world.

What started out as a digital currency used by a few for criminal activities on the dark web, has rapidly become the most talked about topic globally, from farmers to office workers. In January 2017 we saw Bitcoin rise from $1000 to an All-Time High of almost $20,000 by December.

Those that bought and held Bitcoin from the very beginning have become millionaires and investing in Bitcoin seemed like the most sure-way of making money...

...it just kept going up and up and up!!

Everyday people who knew nothing about trading were jumping in on the rise of Bitcoin. From taxi drivers to school dinner ladies, I've spoken to many people who have joined the crowd of Bitcoin investors in the "hope" of getting rich.

Cryptocurrencies have had an enourmous amount of media coverage and many new cryptocurrnecies have surfaced at very low prices - similar to how Bitcoin started out. At the start of 2017 Ripple (XRP) was just $0.005 - yes just half a cent and just 12 months later we see it hit an All-Time High of $3.53...

...that's an ROI of just over 70,000% !!

Imagine investing even $1500.00 in January 2017 on Ripple (XRP), at the all-time high that would have returned just over $1Million - in just 12 months.

Of course - everyone wants to get involved but I don't think anyone could predict how rapidly the mass market was ready to begin accepting cryptocurrencies and how quick everyone would be to jump online and get involved. It got so bad that in the last quarter of 2017 most exchanges had to stop new user registrations because their servers could not handle the amount of traffic coming through.

What Goes Up, Must Come Down

As with any financial instrument, price moves up and down in waves of impulse and correction. Without getting too technical, the surges in price that we saw at the end of 2017 was due to large impulse waves and because of the influx of investments, the price continued to surge beyond everyone's expectations causing all cryptocurrencies to become massively overvalued.

Overvalued Markets Are Not Sustainable

In January we have seen market-wide drops in almost all cryptocurrencies as the entire market has started to correct itself due to being overvalued. This market correction is completely normal and in fact is necessary in order for the price to continue to rise and sustain higher prices.

Once the market has corrected, we can expect the price to break back into its uptrend and target new all-time highs. However, many of the new cryptocurrencies that entered in the markets were nothing more than "Pump & Dumps" by the developers as a way for them to make quick money and those cryptos are not expected to make a comeback - if they do, they won't be around for very long.

When Will The Prices Stop Dropping?

No trader can ever tell you where the bottom is. I don't care if its Nick Leeson or Jesse Livermore, they cannot 100% accurately tell you where the bottom is and that's because the financial instruments are so liquid that no single person can ever control the market.

The Same Way No-One Can Ever Tell You How High It Will Go

As professional traders, all we can do is speculate which direction the market will take and try to calculate as best we can, how long the market will continue in that direction.

For months, I have been calling the Bitcoin correction but I never expected it would reach near $20,000 before starting the correction - I don't think anyone could have predicted that. What I did say was that the market will correct back to at least $8k, being a valid correction but also, that I was expecting a much deeper correction back to $5k or even $3k!!

We have seen Bitcoin pullback to $7,500, which is a valid correction but the market failed to take off, falling short of $10,000 unable to break above $9,500 and the only other way for the market to move is sideways and down. A much deeper correction was expected and we're now seeing the price fall back to retest the lows, currently trading at $8,200.

It is likely we will continue in the bear market for at least another week but if we look at this on the monthly timeframe, we could be looking at a bearish market for at least the next 2 months. - I'm not saying this will happen but it's definitely a possibility we cannot rule out.

The one thing that I am sure about is that once the correction is over, the market will break to the upside and go on into an uptrend to make new All-Time Highs. A lot of big-time investors and financial institutions have been calling for this correction as a way for them to get in on the Bitcoin craze at bargain prices - they weren't about to buy bitcoin at $17,000 when Joe Bloggs bought it at $5k... no way, they wanted a discount.

When Should I Invest In Bitcoin or Other Cryptocurrencies?

A lot of people will wait for the market correction to stop and once they see confirmation that the price of cryptocurrencies is going up and up and up again... those people will jump in and start re-investing, which in turn will drive prices higher and higher.

Like with Bitcoin, you don't want to get in at the top or anywhere near the top, you want to get in as close to the bottom as you can but without going all-in and regretting it.

Taper Your Investments Like A Pro

I am no financial advisor but what I do is taper my investments. I place pending buy orders at even number psychological support levels where I would expect price to bounce up from. As the price continues to drop, my investment grows as I continue to get triggered into the market at multiple levels.

Bitcoin Market Triggers: $12k, $10k, $8k and $6k

So you see, the more Bitcoin drops, the more of my pending buy orders get triggered and the bigger my investment grows. I don't go all-in at one level because we can never say for sure how much it will drop. Imagine going all-in at $12k and then seeing the price drop to $7500 as it has done!!

Whilst everyone else will wait for the price to go back up to $13k+ on it's way to the tops again, I would have already placed multiple investments from as low as $6k and be well into profits while everyone else is just jumping on the bandwagon, I will be well ahead in profit.

Disclaimer

I am not a financial advisor but I am happy to tell you where I would place my pending buy orders for any particular cryptocurrencies. Drop a comment below with the cryptocurrency you want to invest in and I'll take a look at it and let you know where the structure levels are that I would place my orders on.

You invest at your own risk and should always do so with due diligence.

I hope this post has been helpful to you and remember, if you liked it please go ahead and vote for me or RESTEEM if you think it can help others.