I Hate 'Healthy Corrections'!
Let me start off by saying I hate corrections and I despise people posting "No Worries, it´s just a healthy correction."
If a coin is going up... why correct it?? Just do the frozen thingy and Let it Go, but NO!!
That is not how the digital asset market works Baby. Two steps forward, one step back. Make sure you don´t trip during that one step back because if you do you can start all over again.
And that start all over again is precisely why I do not like corrections.
Now I have been asking around, why do we need a correction....what´s so healthy about it. I mean it doesn´t have anything to do with vitamins??
Well for those of you, who like me do not see the need for 'healthy corrections', this is what I got.
"During a bullish trend to the upside, a coin tends to become overbought. Once a coin is clearly overbought the overbought indicators will start flashing and people stop buying. Well if people stop buying but keep selling....prices will drop.
Now these prices need to drop, but remain above a good resistance level. If they drop enough, and the resistance level is holding, the overbought indicators change and the coin becomes good enough to buy once more. Allowing for even more money to come into the market in the wake of the correction.
So to add a little example BTC shot up nicely to 48K last week. Balanced around the 47K levels for a couple of days and all these wise guys were calling for a correction.
Why?
I tell you why! Because BTC after that run was overbought and people were hesitant to buy back into the market at the current price of 47K. A 47K that seemed unable to break the 48K resistance, hence why buy if it can´t go up any further? I get it.
So all investors were standing on the sideline watching and waiting for this 'healthy correction' and they got it:
There we went all the way down to 44.4K and that is why I really don´t like these corrections as I expected first of all a bit more resistance and secondly, the bottom to be around 45.1K. So breaking below 45K got me worried, now I don´t do leverage and stuff so I don´t get rekt. But I still have a very bad taste in my mouth from the downtrend over these last 4 months.
But the wise guys were right so far, we got the drop and shot back up within 24 hours as the overbought indicators faded. Now we should see another leg up today or tomorrow (written on 2nd of April), taking us back towards the real resistance at 48K. And testing if the newly added inflow of money provided enough momentum to break that resistance.
Bottom Line
But even now that I understand the mechanics I still hate corrections. But I will have to deal with it, crypto does not go up in a straight line. But to Let it go, it helps to let it out. And in addition, it was good to confirm my suspicions on why we need these so-called ´healthy´ shizzles. Because just assuming things is really very bad practice.
Thanks for the read, don´t be a bullsmurf and hit that like button, and have a great time till we meet again.
Places to earn from your content you can try for free:
Torum - https://www.torum.com/signup?referral_code=bitcoinbaby
NoiseCash - https://noise.cash/u/BitcoinBaby
ReadCash - https://read.cash/r/BitcoinBaby
Hive - https://hiveonboard.com/?ref=whywhy
Peaked - https://peakd.com/register?ref=whywhy
Publish0x - https://www.publish0x.com?a=l9avg4xnbG
Exchanges I am using and happy wiuth (Affiliate Links):
BitVavo Exchange- European. Higher trading fees (0.25 %) & Great Customer Service - https://bitvavo.com/?a=C21A94C2FD
Kucoin Exchange - Hong Kong. Okay, trading fees (0.1 %) & Contains a lot of low cap gems. Customer Service takes time - https://www.kucoin.com/ucenter/signup?rcode=rJ821BX&lang=en_US&utm_source=friendInvite
Bitmart - Global (USA allowed), Higher trading fees unless you use BMX (0.25 %) & Contains a wide variety of coins - https://www.bitmart.com/en?r=7XFCVy
Places where I am Staking
Cake DeFi. If you invest $50 dollars you get 30 dollars for free. Those 50 dollars you can withdraw at any time or use them for Liquidity Mining, Staking, or lending to earn more DFI rewards. Those 30 dollars are locked for 6 months but already earning you interest during the locked 6 months. https://app.cakedefi.com/?ref=197670
Celsius. Celsius Network provides a platform of curated services with fair interest, zero fees, and lightning-quick transactions. You can store your crypto and get rewards or lend crypto with low fees. Celsius has been around since 2017 and stated to always have the best interest of the community in mind. My experience so far has been good although I will not stake all my crypto with them...NYKNYC
https://celsiusnetwork.app.link/1046126043
Disclaimer
I do not have any connection with any company I am writing about. I am not being paid to write this article.
If you like my content, please hit like and subscribe. Because more Bitcoin baby Mistakes are coming......
Feel free to provide tips, comments, feedback, anything.....?
Remember that sharing will improve life in general!
Direct Donations are always welcome to keep me going:
BTC: bc1qdsrg7qaefxvel6hn6mjemjd4c8jjs40sasyvkp
ETH: 0x4216fEC23Ae7A7d9c46143Ce56C3e8f301F9868c
Bitcoincash:qqesav8kuwcrhl4y8qs9zfjg90cf8dnlkyz43u9w6u
