Crypto investors are on edge right now. And reasonably so. Ever since peaking in early November, Bitcoin prices have dropped nearly 40% – marking the token’s biggest correction since July 2021, when Bitcoin dropped 50%.
Although some altcoins have soared over this stretch – like a few altcoins we’ve recommended over the past few months – most altcoins have followed Bitcoin lower. The total cryptocurrency market cap has dropped 33% from $3 trillion to $2 trillion in just about three months.
That’s a steep drop. Time to call it quits on the Bitcoin bull market?
Hardly. The long-term potential in cryptos remains enormous, considering the entire market is worth just $2 trillion – versus a $50 trillion market cap for the U.S. stock market. Even if just 10% of the money in the U.S. stock market migrates into cryptos, then the whole crypto market could rise 3.5X from current levels.
The multi-year investment thesis on cryptos remains compelling. Don’t quit on that because of a little near-term weakness.
But, more than that, our technical analysis suggests that this recent Bitcoin sell-off may actually be over…
Specifically, there’s one chart that came across our desks this week that very simply and powerfully illustrates why the crypto market could be ready to rebound in a big way.
This is the chart in question:
Basically, over the past year, the total market cap of the crypto market has consistently shown strong support at previous resistance levels.
Total market cap peaked around $1.1 trillion in January 2021. Around that same level, the total market cap bottomed during the July sell-off.
Additionally, total market cap peaked around $1.8 trillion in March 2021. Around that same level, the total market cap bottomed during the September sell-off – and it just bottomed around that same level again.
In other words, the above-chart shows why the current crypto market slide may actually be over…
Fundamentally, we mostly agree with this chart. We do believe that cryptos will remain volatile over the next few months amid Federal Reserve policy uncertainty and sky-high inflation; however, we also believe that once the Fed starts hiking interest rates and inflation cools off, cryptos will stage an enormous comeback.
Thus, it feels like today we’re in this “bottoming out” process – and the best time to buy cryptos is during these “bottoming out” processes.
That’s why, just yesterday, we issued two new urgent buys in our flagship cryptocurrency investment research product, Crypto Investor Network.
One of the coins is a unique Layer-1 blockchain project. The other is a compelling social content play. Both have enormous upside potential.
Remember: Those coins are joining a portfolio where the average gain is about 100%.
We think it’s very likely that both of these tokens will rally 100% or more over the next six to 12 months.
So, what’re you waiting for? Click here to find out all about these two new cryptos to buy right now.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.