The current growth of quotations may be interrupted by a new correction. Experts explained how likely such a scenario is and how to take profit
The opinions of experts may not coincide with the position of the editorial board. RBC-Crypto does not provide investment advice, the material is published for informational purposes only. Cryptocurrency is a volatile asset that can lead to financial losses.
The cryptocurrency market is on the rise again. In the first nine days of March, bitcoin rose from $ 45.2 thousand to $ 54.1 thousand (+ 19.8%). Altcoins are also becoming more expensive, for example, the cost of Ethereum during this period rose by 27% from $ 1.43 thousand to $ 1.82 thousand.According to the head of the analytical department of AMarkets, Artem Deev, now the quotes are growing completely unreasonably, which indicates the prospect of a correction. This means that it is time to take profits.
To “fix a profit” means to sell an asset at a price higher than its purchase price. If this is not done, a decrease in quotations can not only deprive investors of profits, but also lead to losses.
Market sentiment and Twitter
In addition to classic indicators such as buying volumes, overbought and oversold assets, the general market sentiment may indicate an approaching correction, explained Vladimir Smetanin, CEO of the Swiss financial company Newcent. He advises to monitor the activity of Twitter users who write about cryptocurrency. When social networks calm down, the volumes of purchases of an asset decrease, and the price for it rises – these are signals of an approaching correction, the expert says. Smetanin recommends paying attention to them in order to have time to fix a profit.