Greetings dear friends of Project.HOPE, a couple of hours ago I had a productive conversation with a great friend about trading, and after exchanging ideas related to the price drops that cryptocurrencies are experiencing in recent weeks, but also about the recent bullish rebound.

The truth is that the behavior that the cryptocurrency market has been experiencing in the last two months has awakened a sense of panic and confusion among traders, since in the face of this price collapse it is difficult to know when to enter and when to exit in time, however, it is worth mentioning that this behavior is normal in any market, and is generally associated with a control of the bears (bearish investors) over the bulls (bullish investors).

Now while the constant struggle between bulls and bears in the crypto market may give us an idea of the current price crash, it is also true that the frantic rise of Bitcoin generated an extremely speculative high-risk bubble in the entire crypto market, an element that may have triggered the current price collapse and we are probably at a Minsky moment or end of the growth phase of this bullish cycle.

In this sense, regardless of the reasons that have triggered this downward spiral, all users who wish to enter or exit the market, should do so with caution and respecting their trading strategy, remember that the market will always give us new opportunities to operate and take profits, the key is not to get carried away by impulses and emotions.

[1] Vercelli A A Theory of Minsky Moments: a Restatement of the Financial Instability Hypothesis in the light of the "subprime" crisis. 2009. Article: Online access

[2] Nyberg H Predicting Bear and Bull Stock Markets with Dynamic Binary Time Series Models. 2012. Article: Online access