The
volatility of cryptocurrencies is causing more of a stir than ever today; the
prices of digital currencies continue to fall, but even so, many are storing
their investment through https://bitcoinrevolution.pl because they know it can
recover as well.
Supply
and demand are not developing in the usual way; even in times of recession,
they tend to behave differently from the traditional market.
External
factors are further complicating the valuation of crypto assets. However, we
still have to wait for these financial elements’ response to a quite convulsive
traditional market.
In
his message in favor of cryptographic investments, Matt Damon has become most
popular and said that “fortune favors the brave” this moment of
crypto winter is when it adapts perfectly to this expression.
How is the support of a
cryptocurrency recognized?
It
is not the first time that Bitcoin and cryptocurrencies have gone through such
a substantial fall; in 2017, it had an increase of almost 1500% and then
plummeted and touched practically 3,300 dollars, remaining at this value until
the year Next.
Many
have been forecasts that Bitcoin is expected to take its value to a historical
maximum of 100,000 dollars, but, due to the falls, corrections have been made,
hoping its value will increase again, reaching at least 70,000 dollars.
Technical
analysis when investing is one of the crucial aspects since it defines the
supports and resistances of a digital asset in a given period.
The
supports refer to the floor levels that an asset can reach to stop its decline
and start a new upward trajectory, looking for new values.
These support levels are considered
the best investment time since the price level is relatively low. As demand
increases, its value will rise to sufficiently good deals.
Cryptocurrency Resistance
Resistance
usually happens in the financial market when the price of an asset such as cryptocurrencies
is high enough. It is where investors generally sell to obtain the most
significant profit, making the possibility of acquiring the investment at this
price smaller.
With
this trend, a price change is achieved, and the valuation begins to decrease.
The cycle is repeated, touching a floor level, reducing demand, and increasing
supply.
It
could be said that at the beginning of the year, Bitcoin and cryptocurrencies
were in a stage of resistance, which led to the current scene where, unfortunately,
they have not been able to recover their value; still, it is all a matter of
time.
Inflation is the factor that wreaks
havoc on cryptocurrencies
The
inflation in the United States notably affected the development of
cryptocurrencies, and the financial market, in general, has been destabilized.
At
the time Bitcoin was created, it was expected that inflation would not affect
digital currencies as a macroeconomic factor, but this proposal seems to
disappear after the measures recently taken by the Federal Reserve regarding
the increase in interest rates.
This
measure continues to be developed to restrict the ravages the North American
economy is experiencing, no matter how hard the digital currencies have tried
to maintain themselves, in some cases seeing their value decrease and in a few
hours manage to recover and then drop again.
A
financial current that led to a cryptographic winter that cannot be estimated
how long it may last, the trends of the financial market tend to vary
drastically, and that is where everyone waits for the best time to invest.
Crypto crisis or opportunity?
For
many, the decline in cryptocurrencies has been disastrous. Many have invested
in projects that have been promoted, but their trajectory has not shown how
profitable they can be; that is when many, due to their own decisions, have
affected their wallets.
When
investing, it is necessary to evaluate a series of concepts and aspects
relevant to the financial market; the operation of the investments depends on
them, which generates positive or negative results, always depending on the
investors’ decisions.
For
many specialists, this crisis could be considered the perfect opportunity to
acquire crypto assets and, in turn, store them for as long as necessary while
this downward trend changes; the worst decision may be to sell in times of
crisis.
These
trends do not last forever; at some point, they will change their downward
movement and activate the alarms of the bulls before a market that will bring
significant returns.
Conclusion
Even
in adverse situations, Cryptocurrencies have proven to be resistant and
persistent in changing their trajectory, which is why their valuation always
tends to evolve in most cycles.
