Are bottom of the barrel altcoins going to recover?
If you are like me then you've invested in some altcoins that have gone all the way to the floor. In particular, I invested in a coin called APPC Appcoins. It was $4.20 at the time. They said it was going to be worth $50 within a month or two.
At the time this sort of thing seemed possible.
Now it is worth $0.10. That is the biggest fall of any altcoin I've ever seen.
I'm wondering if I should sell at $0.10 or if there's any hope we are going to see a rise up back into the $4 area.
I wish I could give you a more straight forward answer, but I have no idea in which direction the price will go.
What can I tell you though is, that the crazy rise of prices we saw in December last year which was then followed by the steady fall is nothing unusual.
Fun fact: Did you know that in 2010 bitcoin rose a whopping 20,566% (from $0.0015 to $0.31)? In comparison, in 2017 the Bitcoin’s surge was “only” 1,400%.
Although crypto economy is still maturing, we can observe similar patterns as in traditional financial markets. We can see constant transitions from bull to bear market and visa versa.
Bull market is when prices continuously rise due to optimism and economic growth, the opposite of that is Bear market which describes the condition of the market, where prices continuously fall. Eventually low prices lead to more demand and the cycle repeats.
This continuous cycle is not lead by some mysterious force, but it is a consequence of the way traders react to key market indicators. It is however very difficult to predict which path will the market take since cryptos are very volatile and even minor changes can have an impact on its prices.
Traders often use technical analysis to identify trading opportunities, but you need to also consider external factors such as influence of media and psychology of the market which can greatly affect the prices.
In hindsight 2018 has been a huge year for crypto. Although prices have dropped significantly since the all time high around the new year, exciting things are happening all around the industry
No one can know that for sure but during low times of fear, uncertainty and doubt, those are the best times to jump in and invest and hope they do recover for larger gains. Nothing ventured, nothing gained.
Nothing is impossible but the chances of it reaching 4 or above is very slim with the current market conditions.
Would be better if you keep hodl