Good day Hiveians!
Join me in analyzing the crypto markets!
With Russia invading Ukraine all of the markets have plunged into chaos
These are exactly the type of events that are unpredictable and have only negative ramifications. People suffer, markets suffer, global wealth declines etc. etc. For anyone thinking that humans have matured or are "civilized" these actions show how the exact opposite seems to be the case (at least on a global scale). It's still mostly (all) about power and money, territories and control. Why can't we live in a world of trade and liberties in which we share and build instead of conquering and destroying? :(
And just like that we actually might be in a bear market
I have long argued against this as all charts were pointing to a summer 2022 run up. But now key levels are being broken and we are seeing lower lows for most coins which is extremely bearish. Nevertheless, we don't know until we are there... Also, if things change around and improve, the market will no doubt rally again. But for now I would be cautious of buying cryptos as newer lows are quite possible.
One key price level I am watching for a bear market confirmation is seen in this chart. The supporting trend lines are at 36k. While price briefly dipped below that, just like last time when it happened it is more important that the weekly candle closes above that. If it does, the before talked about scenario of the "3 wave bull market" still stands.
Strategies for a bear market?
Nevertheless we might (already) have entered a bear market. What strategies could then be good?
- I think it would be unwise to at least not sell an X amount of ones holdings. Bear market are brutal and can lead to a 90%+ decline, so it's best to take at least some profits. As the markets were already down quite a bit before this news event I am not sure how low prices could be heading. Perhaps we are already half way into the bear market? The good news is that bear markets "only" tend to last for ~18 months... If we are already half way into it, the turn around might not be too long into the future...
- Be careful that the currency/coin you are trading for is stable. In geopolitical crises fiat currencies become unstable as well. The dollar just made a 1% gain over the Euro. Stablecoins are also not safe per se. In this regard I would recommend the HBD as it is an algorithmic stable coin and we can convert it in our wallet. @bocktrades also confirmed that the haircut level will be raised to 30% in the next hard fork. This will make holding HBD much less risky.
- Hodl and keep building. Like I said, I wouldn't recommend hodling all your holdings. But bear markets are a great time to build and grow one's holdings. This is especailly the case with Hive. On Hive you get a ~10% APR and normally less people post in beark markets which means that the distribution of the Hive reward pool is actually more favorable to the people that stick to posting on Hive. Essentially you wil receive more share of the pool with fewer people participating.
Stay safe everyone and let's build a brighter future 👍😊🌼
As a general reminder: Please keep in mind that none of this is official investment advice! Crypto trading entails a great deal of risk; never spend money that you can't afford to lose!
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