Bitcoin and Crypto Make Big Gains After An Epic Rally

Yay, March 2018 Cryptocurrency Rally!

Cryptocurrencies are finally seeing some gains again after Bitcoin rallied after reaching a monthly low of about $7.2k. There is a long road ahead, but this is good.

Saying it is too early to celebrate is an understatement, after-all cryptocurrencies have been pretty bearish since January, but none-the-less this rebound has been strong.

The encouraging thing about this rebound is that it has applied to almost every cryptocurrency across the board (except Ether for some reason; keep an eye out for a buying opportunity there).

Historically Bitcoin rallies haven’t always lifted up alts, but this rally has so far, and thus this is very good for almost all cryptocurrency holders (at least in the short term)!

Most cryptocurrencies are now back to the levels they were at before the last leg of the last correction. Meanwhile, Bitcoin is on track to see the $9k+ range again.

That is all awesome, but it is too early to get overly excited and forget the path that led to this point.

There is still a long road ahead to see the sort of prices we saw in the winter, and honestly, a long road ahead to get back to and surpass the $11.6k level Bitcoin got stuck at a few times since the correction started, but that road isn’t insurmountable.

What is more important than those nice gains right now is finding a steady path that wards off the worst of possible worlds where the overall correction we are in continues to mimic the 2014 crash and dot-com bubble (but at about 15x speed).

In other words, while the gains since Sunday are pretty epic, and that will likely help boost confidence and get people investing again, we aren’t out of the woods yet, and we all need to be realistic about that.

To invalidate the potential of things playing out like 2014 and to confirm a new bull market for crypto in 2018 will take more time and energy.

Bottom line: There are many reasons to be stoked on crypto today. However, one should approach the market cautiously and fight back the urge to FOMO buy without a game plan. There is a lot of ground left to cover if we are going to shake off the bear market that has hounded crypto since January, and until that is shaken off, we want to avoid celebrating too early. That doesn’t mean that you should or should not buy crypto; it means that, if you do buy, make sure to look at charts over the past year to get an idea of where we have been and the best and worst of what could be in store. Take the appropriate measures based on this (some may choose conservative tactics like dollar cost averaging, laddering, stops, etc.). Things look good, but don’t let the FOMO get to you; be realistic, stick to a strategy, and ensure you are a comfortable-for-you position for whatever comes next.

This might be like the .com bubble. It is the next part of the chart we want to keep our eye on. Hello, fractals.

Author: Thomas DeMichele

Thomas DeMichele has been working in the cryptocurrency information space since 2015 when was created. He has contributed to MakerDAO, Alpha Bot (the number one crypto bot on Discord),...

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