A low volume, the end of cryptos?



We saw several messages in the chat about a fear that it might be the end of Bitcoin and cryptos, and the reason given is, among other things, the volume.


There is a lot to be said about this and a lot of what you can read is written by journalists reporting some of the comments made that explain elements and not necessarily predict a fall. In any case, it is important to be able to distinguish the true and the false and not to panic, even if this hypothesis is not impossible.



First of all, under no circumstances I will be able to assure you that cryptos will not reach 100K within a month, nor can I tell you that cryptos will never die. And even more, no expert could really say it. These are always assumptions, otherwise it would be divination.


I will try to take some points that might be useful. We could talk about it for hours, so I will focus here on the points that are mentioned.


  • False alarms: if you are used to the classic market, false impressions exist but are often more of a political nature. In the crypto sector, everything is extremely reactive and very often irrational. It is enough for someone to say that the market will go down to see everyone sell. It is the syndrome of small-cap markets, held mostly by individuals without any fundamental knowledge and without a clear vision of the investment they make. The result: we panic for no reason, for "hearsay", and they quickly regret their actions. Panic is the trader's first enemy.


  • The end has already been predicted many times. Does that mean it's not true? So far yes, but that may change one day. However, for this to happen, it is not just a technical element like volume that will come into play. Much more will be needed, such as a global ban, code cracking or general manipulation. The question of volumes is not even in question here.


  • The low volumes, so what? Low volumes do not necessarily mean a fall in prices. Just look at APPLE in 2003. Lower volumes, and then it's the explosion. A low volume, as we explained very recently on our channel, is a sign of a trend reversal, that's all. Here, regarding the fact that the trend has been downward since January, with the trend reversal theory, we could consider an increase... to be confirmed, of course.

apple 2003


  • But why a decrease in volumes? As the market becomes uncertain, traders are tired of the decline, and wait to see. We are currently in a configuration that contradicts itself in the long, medium and short term with the end of the configuration expected in the coming days. Proof of this is the shared strategy we discussed at the beginning of the week, where we talked about the importance of waiting for a trend to occur. And since we are not the only ones waiting, volumes are falling.


BTC

  • Projects: with the decline in the market cap, many projects have stopped. ICOs are now validated in a less irrational way, healthier for the market. The concepts have advanced, adapted to the market. Basically, they've matured. Cryptos are only a reflection of what's behind them, a new way of life, thanks to the Blockchain. Companies are getting started (we are already helping a consulting firm to find blockchain specialists because the demand is so high), institutions are getting information, adoption is growing. And the cryptos will follow, as long as the technology is reliable.


  • The fact that there are low volumes is also the result of too much dispersion of capital. Indeed, the more cryptos we have, the less each crypto will have as market cap. And a lower market cap also means lower volume, because the liquidity will also be lowered and we will therefore be less likely to trade,...


  • Finally, more in the form of advice, it is important to keep in mind that it would be crazy to put all of your capital into cryptos. An investor must be able to diversify his investments in the event of a difficulty in one of them. Cryptos are a risky investment, don't put what you can't lose, and always keep in mind that up or down, there is always a strategy that can be profitable.


In conclusion, do not panic for the volumes, but just keep in mind, like any trader, that the worst is always possible.





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