The market has plummeted, and the opportunity to pick up cheap chips has arrived
Except for the stablecoins yesterday, all plummeted, almost like a catastrophe. Ripple and BTC fell by about 14%; EOS and BSV fell by about 30%. In fact, among the top 40 coins, except for the two stable coins USDT and TUSD, none of them did not fall.
It seems to me that this scene has not been seen for a long time since the start of the market during the Spring Festival this year.
There is no doubt that BTC, Ethereum, etc. are all within the safe fixed investment range we set. It is worth noting that BNB, the big star among mainstream currencies, has fallen to $16, which is a drop of $60 from the high of $40 this year. %.
What is the trend of the three mainstream currencies?
Let's take a look at the market trend charts of several major currencies:
BTC
The picture above shows the price trend of BTC since the end of 2018. Judging from the current situation of this trend, the $9,400 line is the upward resistance of BTC. At its highest point it was $13,400.
According to the morphological analysis that I have introduced to you, the first drop of BTC is 5400 US dollars (= 9400-(13400-9000)) by arithmetic calculation; 6594 US dollars by logarithm calculation = (9400/ (13400/9400)). We conservatively estimate it at $6,594.
If we continue to observe, we will find that at the end of the trend chart, that is, the place indicated by the arrow on the far right, as the price plummets, the trading volume is also gradually enlarged, which must arouse our great attention.
If the price continues to fall with the increase in trading volume in the next few days, it is very likely that a downward pattern will be formed. In the absence of a particularly favorable situation, the price will fall to the first decline we calculated at $6,954.
ETH
The picture above shows the price trend of Ethereum since January this year. The current situation does not show a clear trend. However, we have noticed that the trend in recent days (the trend circled in red) is first accompanied by an increase in trading volume, and then a decline in accompanying trading volume.
We think this reflects the game between the bulls and the bears. It is very likely that the bears will succeed due to the drag of the big market when the bulls continue to be optimistic. The next trend will continue to be observed.
BNB
The picture above shows the price trend of BNB since the end of last year. We can see that BNB has started a downward trend after reaching a high of $38.86 this year, and it is still in a downward channel and has not yet seen a stable trend.
Similarly, we noticed that at the position indicated by the arrow at the far right end of the trend chart, the trading volume is also enlarged along with the sharp drop in price, so the price of BNB will still be weak in the short term.
Market summary and suggestions for investors:
Generally speaking, we believe that among the three coins, the short-term trend of ETH is temporarily uncertain, BTC has a further downward risk, and BNB has a greater downward risk.
Judging from the trend characteristics of this round of market, since the overall market is driven by BTC in most cases, how BTC moves in the next step will most likely determine how the overall market moves. Judging from the current situation, the possibility of the overall continued decline is very high, and there will be eggs under the whole nest.
However, such a market is a great thing for our regular investors, and the time to pick up the bargain has come again!
Not to mention BTC, coins like Ethereum can be invested with confidence, and now a large number of value coins have fallen from their highs. The risk of falling to less than $20 like BNB is already very small. Although there is room for further decline, investors can rest assured that they will invest.
But I must remind everyone again that the global economic situation will not be good from the second half of this year to next year, and it is also very important to keep enough cash.
