Interesting times indeed. A recent alt coin market run almost to the moon and bitcoin is on the up and up again. But looking at the charts, is a vertical line sustainable?
Many people think we will continue to go up and whilst I am sure that is well true for the long term, I suspect, we are running out of steam and overdue for at least a pause, if not a correction.
There are only so many institutions and new retail buyers entering into the market. With eye watering valuations, it would need absolutely astounding amounts of new investments into crypto to keep the line vertical, to keep the returns in the 2 x, 3x, 4x realm. Good things always come to an end at some stage.
Just think, if you were to sell your crypto now, who would be the people buying it off you at such high prices? Is there more buyers than sellers, if so, how long will it take for there to be many more sellers than buyers?
I may well be wrong, but history tells us that there is always corrections after very big rises.
As always, be cautious and when the market is being greedy and everyone is telling you to buy, do the opposite. Have a lovely day :)
