Strong downward movement yesterday as the Bollinger bands suggested. Currently holding support.
The FED minutes came out and said that as soon as March they will start tapering. We saw that USTECH100 took a punch as well as SPX but is still holding trend. DJI also dipped but only little comparatively while still very much holding trend. S&P has dipped but is still holding trend. Essentially no trends have been broken in the stock market.
Last year the economy was pumped up by the excessive money printing but have now realized that this needs to be tapered and inflation needs to come down. They taper by buying fewer bonds and they talk the market down with the goal of slowing the market down.
Right now the whales are showing conviction in bitcoin, the illiquid supply can confirm this.
Sheldon believes we can expect BTC to go down to near $40K. We are testing the main support trend now and we are seeing a repeat of a pattern for early to mid last year where the whales are playing games pushing the value down to get the retail buyers to buy and followed by whale selling again. We should have more clarity by the end of Januarry.
Fear and Greed index is at 15 which is extreme fear. We are facing a retail shake out and that could take some time to complete.
What should we do now?
Do not sell anything today, it’s one of the worst days to do so. You should be focused on 4 things:
- You should have a buying list written down to follow and set an entry price as goals for each stock.
- Ask yourself the most important question now. Am I holding quality stock, will each coin in my portfolio survive a bear market? Switch the ones that you believe wont survive. Get out of the individual games and put your money on the picks and shovels that will survive a bear market.
- Are you staking your coins? Don’t let your tokens not work at any time.
- If you have loose cache and stick in a good protocol like Anchor and do not buy any coins right now.
Sheldon also added an extra note to the above 4 points in which he suggests we think less about the cost of the coins and more about the quantities. The stocks are being manipulated and we should just ride it out.