Looks like the ideal correction target zone was hit and we had a bounce. The daily closing candle had a nice bullish wick. We are definitely not out of the woods, but a few observations.
All impulses and corrections were textbook. No EW rules were violated. This recovery is similar to the Sept bottom (I believe) I got tricked into thinking it was an ABC correction and headed for new lows, but we went from 5000 to 20000 in a matter of weeks.
We have massive good news (Institutional investors and major investment firms are caving in from the pressure of their clients wanting exposure to this area---Coinbase announced they are forming a storage facility for large institutional players to help them safely store their coins, they also announced a weighted index fund----The SEC hearings went fairly well. Some may think they are draconian, but they could have been much worse. (maybe they will be later)-----SegWit is highly successful and is proving to be a valuable addition to BTC with lower costs and faster transactions-----Lightning network will slowly grow which will make transactions even cheaper and faster, laying the groundwork for mass adoption.) This along with other successful alt coin projects are still in the beginning stages of being a worldwide phenomenon. We aren't even close to this. We hear and see it all over because we pay attention to it and have money invested, but only 1 in 4 people on this street know what this technology is, and how to use it safely and efficiently.
Even if we do go to lower lows, and have a multi month bear market, I would be laddering in small pieces as it goes down, because we have not seen the end of crypto IMHO. I invested during the 1999 and 2000 crash, and the 2007-2008 crash. The dot com bubble had a much much larger Market Cap and everyone and their mother was invested. IMHO, we are no where near this point. BUT, for those of you that are new, bear markets take a long time...Everyone will believe it is over for good, blood will spill. This is the time to buy, before the large players get in. They will be buying hand over fist. Particularly the Large Caps and alts that have solid projects, a good balance sheet that once more transparent, will give investors the confidence that they will be able to deliver on their promises in the White Papers.
All impulses and corrections were textbook. No EW rules were violated. This recovery is similar to the Sept bottom (I believe) I got tricked into thinking it was an ABC correction and headed for new lows, but we went from 5000 to 20000 in a matter of weeks.
We have massive good news (Institutional investors and major investment firms are caving in from the pressure of their clients wanting exposure to this area---Coinbase announced they are forming a storage facility for large institutional players to help them safely store their coins, they also announced a weighted index fund----The SEC hearings went fairly well. Some may think they are draconian, but they could have been much worse. (maybe they will be later)-----SegWit is highly successful and is proving to be a valuable addition to BTC with lower costs and faster transactions-----Lightning network will slowly grow which will make transactions even cheaper and faster, laying the groundwork for mass adoption.) This along with other successful alt coin projects are still in the beginning stages of being a worldwide phenomenon. We aren't even close to this. We hear and see it all over because we pay attention to it and have money invested, but only 1 in 4 people on this street know what this technology is, and how to use it safely and efficiently.
Even if we do go to lower lows, and have a multi month bear market, I would be laddering in small pieces as it goes down, because we have not seen the end of crypto IMHO. I invested during the 1999 and 2000 crash, and the 2007-2008 crash. The dot com bubble had a much much larger Market Cap and everyone and their mother was invested. IMHO, we are no where near this point. BUT, for those of you that are new, bear markets take a long time...Everyone will believe it is over for good, blood will spill. This is the time to buy, before the large players get in. They will be buying hand over fist. Particularly the Large Caps and alts that have solid projects, a good balance sheet that once more transparent, will give investors the confidence that they will be able to deliver on their promises in the White Papers.