Newsletter March 2nd

Today is Saturday, March 2, 07:00 UTC and it is time for another short bi-monthly newsletter.

Dear Gostake community,

After 8 months of almost constant monthly Bitcoin price decrease, it seems the king of cryptocurrencies has finally reached its first monthly green price candle. According to technical analysis, a green monthly candle takes place when the price an asset, Bitcoin in our case, ends the month higher compared to the start of that same month.

If we use missed opportunity calculator and compare Bitcoin price data from February 1 2019 and February 28, 2019, this is what we get:

As you can see, $1000 investment in Bitcoin would generate 11.31% ROI over the month of February 2019 which supports the green candle theory.

If we analyze Gostake data, focusing on Bitcoin price at the beginning of March compared to the beginning of February of the current year, this is what we get:

As you can see, Bitcoin price has appreciated 10.4%,  month on month, which also confirms the first green Bitcoin candle in this year and it could potentially signal the start of accumulation and positive Bitcoin price reversal. As always, please understand is a profit tracking tool which can help you identify trends similar to this one but always make sure to draw your own conclusions. After all, there are numerous crypto analysts who are still unsure whether this long crypto winter has ended.

If we try to identify additional reasons which could support the claim we have started the accumulation period which should result in Bitcoin price increase during this year, 3 main elements come to the surface.

  1. Bitcoin block halving

According to Bitcoin block halving calculators, the next Bitcoin block reward should take place in late May 2020. At that particular moment, the number of mined Bitcoins which enter the market every day will decrease from current 1800 to 900. In other words, Bitcoin inflation will be cut in half. Since classic economic theory suggest the price of an asset increases if the supply decreases, considering constant demand, this phenomenon will definitely positively affect Bitcoin price. Most of the analysts agree positive effects of Bitcoin block halving will be calculated into Bitcoin price during 2019.

     2. Institutional investments into crypto economy

The entire crypto ecosystem expects major players, institutional investment funds and large investment banks,  to offically start investing serious money into crypto. Since a lot of interest from their shareholders obviously exists, the main precondition for this to take place is positive crypto regulation. Some analysts even suggest smart money has already started Bitcoin accumulation during 2018 crypto winter and most of them agree Bakkt, NYSE, Morgan Stanley and other large players within traditional financial markets will officially increase their presence in crypto markets, as soon as official regulations allow them to do so.

     3. General market cycle

We are all aware financial markets, including crypto markets, move in cycles. In other words, after the period of long term price decrease, there is a period of price growth. Since we have been suffering red crypto candles, constants price dumps and retractions for over a year, we are sure we all agree it is about time to see some signs of trend reversal. We are positive most of you are familiar with the famous Psychology of the market cycle graph which clearly shows markets move in cycles. It also shows patience is one of the most important assets a small crypto trader and investors can have since those who panic, LOSE money.  

The main catch is enter at the bottom and exit at the peak. Sounds quite simple, isn’t it? In reality, it takes a lot of self control not to sell when there is panic in the market and “blood in the streets”. It takes even more self control to buy during the period of anger and depression, as portrayed in this graph. Smart traders can do that if they believe in market and if they understand this last point, MARKETS MOVE IN CYCLES!

Please make sure to use data to help you make smart and profitable decisions about which crypto assets to buy or sell and at what price to enter the market.

This information, as everything else on GOSTAKE, updates in real time and can help you to stay on track with the situation in crypto markets.

As always, please understand we are not financial advisers and we do not guarantee positive or negative results based on our data or past performance of crypto projects we track. Please do not hesitate to contact us using our contact form should you have any additional questions or require additional information. Please ensure your assets are kept safe and protected, never share your passwords or private keys with anyone else and try to run your wallets in a secluded and protected environment. Always install and update the latest antivirus and antimalware software. sincerely hopes the provided service will help you create and maintain differentiated and rewarding crypto portfolio.

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Sincerely yours,