CLUES THAT THE CRYPTO RUSH COULD BE AROUND THE CORNER
From the looks of it, the next bull market could be right around the corner for cryptocurrency trading. While nobody can be 100% sure of it, all indications are pointing in that direction.
After Bitcoin went completely bananas, exploding to nearly $20,000 in early December after a frenzied run, it has been a long and arduous ride down the the slopes during a market correction that lasted nearly two and a half months.
I got into the crypto game in late November, and made some decent gains during the end of the last bull market. Fortunately, I ended up ahead of the profit curve after the correction finalized. Honestly, I was convinced that Bitcoin would correct to less than the $5,000 level before the bear market was complete.
But it appears that lots of institutional buyers were ready with automated purchase orders at the $6,000 support level, and the big dip that took it down below that point did not last long. Still not convinced, I waited on the sidelines until there was enough evidence that we had reached the bottom.
At this point, most of the top prognosticators believe that we have completed the correction, and the top cryptocurrencies have consolidated nicely forming a strong base. The market has been propagating sideways since the big dip in January, and this has been encouraging.
The news on the developments of the major coins and even the altcoins has been strong since the dip. I truly believe that the world is headed towards adoption of cryptocurrency as a standard of trade and exchange. But we are still in the early stages of the process.
I am still cautious, because we have seen the cryptocurrency market drag through distribution phases for upwards of a year at a time. The previous bear market only lasted two or three months. But it appears that the overall upward trend is still in tact.
Make no mistake about it, the "smart money" of the world knows that this paradigm shift is real, and an enormous amount of wealth will be transferred into the cryptocurrency market in the next few years.
A significant development occurred in February that is one of the biggest indicators that we are on the edge of a rising bull market. Credit card companies have halted the ability to buy cryptocurrencies on Coinbase via credit. There is a reason behind this.
It's called the "leverage loop", and it threatens the stability of the credit card companies. If credit card companies continue to allow purchasing during a rising market, their customers can leverage gains on cryptocurrencies in short order, and pay off their balances. Credit card companies need to keep customers in a reasonable amount of debt in order to make money on high interest rates that they charge.
That's why they put the kibosh on allowing people to buy cryptos on credit. If we weren't on the edge of a bull market, you better believe that these companies would continue encouraging their users to increase their debts, thus facilitating more profit through interest charges.
Another strong indication of a pending bull market? The action of the Digital Currency Group. This is one of the major players in future investments in the world. They are the company behind MasterCard. They are making plans now to update credit card terminals to allow cryptocurrency payments. That's major news.
Lastly, we have to consider what is going on with the stock market. We have every indication that the stock market might be in the midst of a major correction. They aren't going to sit back and watch this happen without taking action. Proof? The NASDAQ company is one of the companies behind Coinbase, the largest cryptocurrency exchange in the world, and the only on-ramp to converting fiat currency to cryptocurrency.
Coinbase is already making developments to integrate a plugin that will allow businesses to accept cryptocurrency payments. The biggest potential customer is the biggest retailer in the world: Amazon.com.
Coinbase is positioned to be able to snatch a significant amount of money from the banking institution, because they will make it cheaper for regular every-day businesses to process payments using crypto. This represents a major threat to the future of banks.
All of these developments have a significant impact on cutting the bear market to a close, and opening up the gates for the next bull run. While we can't be solidly sure when the market will start the next major uptrend, there isn't a question about "IF" it will happen... the question is WHEN.
Keep your eyes on the markets, and invest responsibly. There is definite risk in getting involved in what we call the "early adoption stage", but with great risk comes great reward. My advice to everyone is to invest only what you can afford to lose. Be careful, but pay close attention to what is going on in the coming months. It will be exciting to watch!