Analysis of recent BTC and ETH market trends
In the past two days, under the leadership of BTC and ETH, the mainstream currencies have launched a round of rising prices, and there was another decline yesterday. As of writing, BTC stood at 8,500 US dollars, and ETH stood at 190 US dollars.
So is this collective rise a prelude to the follow-up market or just a small commotion? Let's take a look at the charts of BTC and ETH.
1. The trend of BTC
The above picture is intercepted from coinmarketcap, from April 29th to October 11th of this year's BTC price chart.
The first red circle in the figure shows that BTC fell from $9,700 to $8,500 between September 24 and September 25, a drop of 12%. The 24-hour trading volume (shown in the bottom curve) that accompanied this sharp drop was around $29 billion.
2. ETH trend
2. ETH trend
The above picture is intercepted from coinmarketcap, the price chart of ETH from April 29th to October 11th this year.
The first red circle in the graph shows that ETH fell from $201 to $169 between September 24 and September 25, a drop of 16%. The 24-hour trading volume (shown in the bottom curve) that accompanied this sharp drop was around $13 billion.
The second red circle in the figure shows this small market: ETH rose from $182 to $193 between October 9 and October 10, an increase of about 6%. The gains were accompanied by 24-hour trading volumes of around $9 billion.
How do we investors deal with this small market?
One of the key indicators for us to judge the possible trend brought about by price changes is the trading volume.
Judging from the above two trend charts, in this small market, the trading volume of both BTC and ETH is still far from the sharp drop last month.
Whether it is BTC or ETH, their volume in this upswing is less than 70% of the volume in the downswing.
In the short term, such volume is not enough to change the trend. Without the increase in trading volume, BTC will encounter greater resistance at $9,700 and ETH at $201.
Looking at the midline, this kind of trading volume is not as good as the trading volume when the market rose to the peak of this round in May. If we compare the high point of the market from May to June to a big rebound in this bear market, then this small market is still far from a rebound.
So we don't have to be excited about this small market at all, just treat it with a normal mind, or even ignore it, and still operate according to our fixed investment strategy.
This small market is less than a month away from the big drop on September 24, and it is less than four months away from the highest point of this round of market in June.It has been less than two years since the bear market at the beginning of 2018, so no matter from the short-term, medium-term or long-term perspective, it is just a tiny ripple, not even a rebound.
But it has become the focus of attention and a hot topic in the circle, which shows thatMany of our investors are too eager for the arrival of the bull market, which reflects that we are too impatient and lack the psychological preparation for long-term combat and persistence to the end.
For most of our ordinary investors, investment is not only a process of financial management, but also a process of forging ahead. In this process, we will be subject to various temptations, interferences and even blows.
These temptations, disturbances and blows will eliminate the unsteady ones in the forward team, but will also sharpen the will of the determined ones more tenaciously. Only the determined ones can reach the end of victory.
