Cryptos, are back on track! Or are they?
As predicted towards the end of last year, and at the start of 2018, Cryptos have trended lower, much lower, throughout the first few months of 2018.
From a contrarian investor's perspective, this came as no surprise, as the masses began to rush into the streets and those who scarcely could say the word Cryptocurrency began to dive in with both feet.
This is always a red hot warning sign, especially when compounded with the fact that the mass majority of those joining the party in the late hours, we're stating that "it can never go down", "Lambo's for all!", and other statements that are made near a bubble top.
Yet, as also predicted, Crypto's are now beginning to move higher, and in a significant way. This is largely due to the fact that pressure is easing as the tax season within the United States comes to a close and those who sold for accounting purposes are now taking renewed positions.
Bitcoin, leading the charge is heading towards its best week in four months, up over a whopping 25% this week alone!
Still, the fear of the tax man cannot be overstated, as there are countless out there still, that have skirted the law and avoided paying their taxes, a fact that was pointed out in a previous article and one that the IRS has taken a keen interest in, showcased by their recent crackdown on Coinbase users.
Perhaps the recent lows have formed a new support level and we are destined to move higher from this point forward, as seen from the recent enthusiasm returning to the Crypto space, or perhaps not, it is far too early to tell.
Regardless of what happens in the short term, I believe that Cryptos will be stuck in a sideways trading pattern, at least for the next year to two years, eventually returning to and testing their old highs.
What is however starting to solidify is the second part of my prediction that I made during the latter days of 2017. This is that funds diverted away from the precious metals space, are going to begin to find their way back into the precious metals markets throughout 2018, as those who made large profits from Cryptos are going to begin to look for the next best opportunity.
Many early supporters of Bitcoin have already begun to state concerns they are having with the Cryptocurrency and have begun to sell positions, fortunately for many of these early movers, they sold before the recent correction and truly made staggering profits, profits that have made them fabulously wealthy, likely setting them up for the entirety of their lives.
Jeff Berwick, a familiar name to anyone in the precious metals space was one of the most prominent and vocal supporters of Bitcoin and other Cryptocurrencies. He still is, without a doubt a believer in the space as a whole, as am I, however, he too recognized the fact that the market was simply getting overheated and overpriced.
Due to this fact, he has reiterated the fact more than once that he is diverting funds back into precious metals, as he believes they are severely under-priced and due for a massive move higher in the coming years.
Things are beginning to take shape and the "smart money" are acting now, moving out of the Cryptocurrency markets and back into precious metals, sensing that the time is ripe and the end of this long bear market is soon to come to an end.
Golden rays lay on the horizon and the protection of precious metals is going to be needed more than ever, as we continue to move forward into this increased time of geopolitical turmoil and uncertainty. Opportunity awaits you, but time is running short.
