The volatility of cryptocurrencies is causing more of a stir than ever today; the prices of digital currencies continue to fall, but even so, many are storing their investment through because they know it can recover as well.

Supply and demand are not developing in the usual way; even in times of recession, they tend to behave differently from the traditional market.

External factors are further complicating the valuation of crypto assets. However, we still have to wait for these financial elements' response to a quite convulsive traditional market.

In his message in favor of cryptographic investments, Matt Damon has become most popular and said that "fortune favors the brave" this moment of crypto winter is when it adapts perfectly to this expression.

How is the support of a cryptocurrency recognized?

It is not the first time that Bitcoin and cryptocurrencies have gone through such a substantial fall; in 2017, it had an increase of almost 1500% and then plummeted and touched practically 3,300 dollars, remaining at this value until the year Next.

Many have been forecasts that Bitcoin is expected to take its value to a historical maximum of 100,000 dollars, but, due to the falls, corrections have been made, hoping its value will increase again, reaching at least 70,000 dollars.

Technical analysis when investing is one of the crucial aspects since it defines the supports and resistances of a digital asset in a given period.

The supports refer to the floor levels that an asset can reach to stop its decline and start a new upward trajectory, looking for new values.

These support levels are considered the best investment time since the price level is relatively low. As demand increases, its value will rise to sufficiently good deals.

Cryptocurrency Resistance

Resistance usually happens in the financial market when the price of an asset such as cryptocurrencies is high enough. It is where investors generally sell to obtain the most significant profit, making the possibility of acquiring the investment at this price smaller.

With this trend, a price change is achieved, and the valuation begins to decrease. The cycle is repeated, touching a floor level, reducing demand, and increasing supply.

It could be said that at the beginning of the year, Bitcoin and cryptocurrencies were in a stage of resistance, which led to the current scene where, unfortunately, they have not been able to recover their value; still, it is all a matter of time.

Inflation is the factor that wreaks havoc on cryptocurrencies

The inflation in the United States notably affected the development of cryptocurrencies, and the financial market, in general, has been destabilized.

At the time Bitcoin was created, it was expected that inflation would not affect digital currencies as a macroeconomic factor, but this proposal seems to disappear after the measures recently taken by the Federal Reserve regarding the increase in interest rates.

This measure continues to be developed to restrict the ravages the North American economy is experiencing, no matter how hard the digital currencies have tried to maintain themselves, in some cases seeing their value decrease and in a few hours manage to recover and then drop again.

A financial current that led to a cryptographic winter that cannot be estimated how long it may last, the trends of the financial market tend to vary drastically, and that is where everyone waits for the best time to invest.

Crypto crisis or opportunity?

For many, the decline in cryptocurrencies has been disastrous. Many have invested in projects that have been promoted, but their trajectory has not shown how profitable they can be; that is when many, due to their own decisions, have affected their wallets.

When investing, it is necessary to evaluate a series of concepts and aspects relevant to the financial market; the operation of the investments depends on them, which generates positive or negative results, always depending on the investors' decisions.

For many specialists, this crisis could be considered the perfect opportunity to acquire crypto assets and, in turn, store them for as long as necessary while this downward trend changes; the worst decision may be to sell in times of crisis.

These trends do not last forever; at some point, they will change their downward movement and activate the alarms of the bulls before a market that will bring significant returns.


Even in adverse situations, Cryptocurrencies have proven to be resistant and persistent in changing their trajectory, which is why their valuation always tends to evolve in most cycles.

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