Crypto market is bleeding once again as Bitcoin loses support at $58k and falls to $55k this morning. Altcoins immediately reacted to the Bitcoin price drop and fell from 5 to 10%. Altcoins always looks to be ready to say yes to the Bitcoin call. Bitcoin price declines, Altcoin prices declines and Vice versa.
Now Bitcoin recovered a bit and get back above $56k , similarly altcoins are recovered a bit. There is still fear into the investors as market can fall further. Till now Bitcoin has good support at $55k which is good. If Bitcoin loses that support then it can fall below $50k which can lead to heavy losses for the future traders as they would be impacted the most. Bitcoin is having strong resistance at $60k which is sending it down.
The best thing during these dips one should simply buy their favourite tokens in spot account because it is the safest way. When the prices recovers there will be a profit on your hands. On the other hands your number of tokens remains the same, you just have to wait for the market recovery.
The best characteristic of the spot is that you dont have the risk of liquidation, your bag worth can fluctuate but it does not wipe out. Futures trading is very risky and your account have the risk to turn into zero, this is why you should stay away from future trading.
Right now there seems to be instability in the markets which is not limited to cryptocurrency . This is continue since we have war tensions going on in the region. There are various other reasons behind this instability which i have discussed in my previous contents.
On the other hand , Ethereum which is the second big crypto, its price was declined by more than 6%. Its price was trading at $2500 which dropped to $2300 , it was a massive decline. Ethereum is getting major hits in each dip. There are various reasons behind the decline.
Ethereum foundation often sell some Ethereum which often creates sell pressure which leads to decline in the price. On the other hand, layer chains are taking over Ethereum which could be very challenging for the Ethereum blockchain in the coming days.
The activity on Ethereum mainnet seems to be decreasing continuously which shows lack of interest into Ethereum. Ethereum's high transaction fees mechanism seems to be another factor which is a major obstacle in the growth of Ethereum.
Despite of the challenges Ethereum is facing, it is still considered to be the daddy of all layer2 chains. Keep in mind that Ethereum is still the second largest crypto by marketcap. Ethereum still has a lot of room to grow as crypto experts predicted that it will pump hard in the bull season which is getting delayed due to global tensions.
As a crypto users we are all waiting for the bull season because that will put smile on the faces of true holders. Holding through out the bear market is not easy, bull market comes to reward those having patience. Lets hope everyone gets rewarded in the end.
Thats it for today. Thanks for reading. What do you think about my today's topic? Let me know your thoughts in comment section. In the end i would like to Wish you and your family a happy day ahead. Stay Blessed.
Motivation Dose
Get out of your comfort zone and fight the troubles and hurdles that come your way to success. Success awaits you. Life is beautiful ، live it to the fullest. Dont be hopeless. Stand strong in the ups and downs of life as its part of life. There is always a light behind every dark side.
About Author
@coolguy222 is a crypto trader and content creator on hive blockchain. He also runs a small business of Mobile accessories and Wrist watches. He loves to make new friends.
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