The post-traumatic stress caused by the great Bear Market of 2018 may be still vivid in crypto investors’ minds.
The fear of buying the top is so intense for many traders that they see every dip around a new all-time high with great prudence. That is not a bad thing per-se. Risk management is one of the main pillars of trading. Taking profits from time to time helps to balance the overall risk of the portfolio, and, in some cases, it makes a lot of sense.
A few weeks ago, we called for a period of uncertainty, and it actually led to a broad market correction. Bitcoin keeps struggling with breaking the $60,000 level, and it may take a while before we see a clear breakout. Meanwhile, Altcoins show resilience on each dip, proving that the demand is still there, in addition to Ethereum.
Binance calculates a DeFi index using ten large-cap coins, and its chart looks undoubtedly bullish . The index is consolidating above an inverse head & shoulder right below the all-time high. As long as the red horizontal level holds, the chances are that the market experiences a new strong leg up at any time. From the macro point of view, the crypto market looks as solid as it ever has been.
In 2017, the only blockchain with real use was Ethereum. And it was used mainly to pour money into ICOs with no working products. Today, everything is different as billions worth of transactions daily provide real utility for those using decentralized protocols. Liquidity providers, oracles, exchanges, lending, NFTs can still add fuel to this Bull Market.