There have been a host of positive movements this week in the crypto trading markets. The beginning of the week has seen a lot of green numbers all across the board. This is sure to give a renewed sense of optimism to many traders who had grown weary in the past months of sliding markets and negativity. New investors too should hopefully be inspired to pick up the mantle from where they left off at the back end of last year.
What does this all mean though, and is it a truly long lasting boost or a false dawn for the market.
The Importance of Viewing the Bigger Picture
From the first moment you learn about how to invest in crypto, you should be aware that it is key to look at the bigger picture. It is certainly very tempting to be influenced by the possibility of short –term gains and the upwards movement of those around you. The reality is though that these gains can be short lived and will often result in traders, especially those new to the market, actually buying in at some of the highest prices. Therefore, before you trade at all, it is important to do some background research and realize the point at which you are making a purchase.
Do Not Panic
These may well be the first positive signs of a move in the right direction for the markets, with BTC testing the upper limits of resistance, the technical analysis looks strong. That said, if things turn out to go the other way, it is vital to keep the faith in the long run. Also important though if you can is to take profits. Traders still make a lot of money even in bear markets, but it is important to realize when you should trade out of your position if you are a short-term or day trader.
There is a feeling of déjà vu around the market with thoughts going back to almost a year ago when the market showed the beginning of a bullish movement around this time. A repeat of the same movement would certainly be a welcome change.