Was altcoin pullback a chance to buy the dip?

Was altcoin pullback a chance to buy the dip?

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Fear and doubt permeated the crypto market early on Monday as an 8% flash crash on bitcoin, and much more on many of the altcoins perhaps provided a chance for crypto traders and investors to buy a welcome dip.

Buy when there’s blood on the sidewalk

One of the words of advice from professional traders might be that it’s good to feel extremely uncomfortable when buying. Only then can the trader have the chance to buy when there’s blood on the sidewalk.

Therefore, those traders that started to buy when others were hitting the sell button in blind panic may have been the ones picking up the bargains. 

Of course, there are always swings and roundabouts in trading the market, and it could also be that those who got out the quickest, were the ones who suffered the least on the way down.

Altcoins extra $200 billion incoming?

Be that as it may, for the current setup in crypto, a good opportunity may well have presented itself. 

Source: Trading View

Zooming out on the weekly time frame, the Total 3 market cap (all cryptocurrencies except $BTC and $ETH) shows a nice retest of $448 billion. This potentially puts the altcoins on alert for the next stage of the bull market. With the next major resistance coming in at $642 billion, this could mean another nearly $200 billion pouring into the altcoins.

Injective quickly shakes off crash

Source: Trading View

One altcoin that appears to have remained fairly impervious to the current crash is Injective ($INJ). While a fast wick did in fact shoot all the way back to support at $19, this was bought up very quickly. It can also be seen that the row of 4 hour candles brought the price back nicely to the 0.618 fibonacci, so anyone looking to jump on this rocket ship had a couple of good opportunities to do so.

Trade safely

Investors and traders should trade carefully in what can be a very volatile crypto market. Stops should be employed in order to minimise losses in any unforeseen downward price action. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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