What goes up must also go down. And then up again. Then go back down. And on and on and on…
Crypto traders and investors started the week with a big shock to the markets. As assets in the blockchain industry collectively plunged on Monday, users took to Twitter to express their dismay (or, in some cases, joy) over the current state of the cryptocurrency.
Inflation, a potential rate hike, a looming recession, and yet another DeFi fiasco all contributed to the current hype in the markets on Monday. As a result, the price of Bitcoin (BTC) has fallen to levels not seen since the end of 2020, several crypto exchanges have restricted the withdrawal of their tokens, a growing number of Web3-focused companies have announced layoffs and price floors for various non-fungible tokens (NFTs). projects stalled.
Looking at a few tweets from veteran crypto enthusiasts, you can understand the general mood. Storing bitcoins and altcoins is a real challenge for crypto investors, however some seem to see their supposed diamond hands weakening. As one user noted:
The crypto space is not alone in its plight as the entire stock market is suffering huge losses at the same time. The growing tightening of the Federal Reserve’s monetary policy has caused investors to sell many types of stocks as the S&P 500 fell 4%, setting a new low for 2022.
Whales and ex-whales have begun to assert themselves as awareness grows that they have lost much of their wealth.
Elsewhere on Twitter, some are trying to figure out their next best move for buying, selling, hodling and trading in the larger crypto markets.
While technical analysis and forecasting will forever remain key for some traders, the current market dynamics have made traditional charting methods almost obsolete. Here is a chart suggested by one such crypto enthusiast explaining the loss of confidence in technical indicators:
