With the cryptocurrency market making headlines in January and the last week of June, investors are left wondering if it’s too late to enter the game and buy crypto stocks. While there are numerous crypto stocks out there, not all of them are considered quality investments. In this article, we’ll delve into the world of crypto stocks, using Microvision as a guiding example to help us understand the small crypto stocks universe. We focus only on crypto stocks, not cryptocurrencies, although we can’t stress enough how much we like XRP as explained in Our XRP Price Forecast Of 10 USD Is Now Confirmed.
Microvision is one of the few crypto pure play stocks (focused on acquiring BTC, facilitating BTC transactions). Its chart since mid-2020 offers valuable insights:
- In May 2023, the stock’s multi-year downtrend came to an end, followed by a significant bounce that tripled its price.
- Observing the chart, one fascinating point is how the June rally stalled precisely at the 50% retracement level.
- Additionally, it’s worth noting the alignment of the breakout price in December 2020 (marked by a yellow circle) with the breakout level in May 2023 (another yellow circle).
This coincidence adds significance to the price movements and potential trends.
Considering the current state of the tech stocks market, Microvision is expected to retrace further, as tech stocks prepare for a pullback. Nevertheless, the real value of analyzing Microvision’s chart lies in its representation of the moves in many other crypto stocks. The clarity provided by this specific chart is valuable for investors looking to navigate the crypto stock market effectively.
Crypto stocks retracement underway
While closely monitoring the exact retracement level of Microvision, we identify two potential scenarios. First, Microvision might retrace to its May breakout level, filling the gap represented by the yellow circle. Alternatively, it could drop until its February highs. Regardless of which scenario plays out, the Microvision chart holds tremendous potential in helping investors time their entry into any quality crypto stock.
However, with the current market situation, it’s understandable that investors might wonder if it’s too late to buy crypto stocks. The market’s rapid rise has sparked concerns about possible bubbles and overvaluation, leading some to question if they’ve missed the boat. It’s essential to approach this situation with a balanced perspective.
While it’s true that some crypto assets have experienced explosive growth and may have reached speculative heights, the overall crypto market remains promising. The crypto space is continually evolving, with new projects and technologies emerging, presenting numerous investment opportunities. As the sector matures and becomes more regulated, opportunities for long-term growth and stability are expected to increase.
Buy crypto stocks in 2023? Only quality, well timed.
The key to successful investing in the crypto space lies in thorough research and identifying quality projects with strong fundamentals. Cryptocurrencies and crypto stocks should be seen as part of a diversified investment portfolio, rather than a get-rich-quick scheme. Investors should be prepared for volatility and potential corrections, as the market’s rapid fluctuations are characteristic of the crypto space.
Timing is crucial in the crypto market, and using chart analysis, as demonstrated with Microvision, can help investors make informed decisions. Keep a close eye on retracement levels, breakouts, and key resistance points to enter positions strategically. Don’t be swayed by market hype or FOMO (fear of missing out) – disciplined and patient investing is essential.
In conclusion, it’s not too late to buy crypto stocks in 2023. While some assets may have experienced extraordinary growth, the overall crypto market continues to hold potential for long-term investors. Quality projects with strong fundamentals and a clear market vision should be the focus for investors looking to navigate the crypto space successfully. Use chart analysis, like that of Microvision, to gain valuable insights and time your entry points wisely. With proper research, risk management, and a long-term investment outlook, the crypto market can offer exciting opportunities for investors.
Looking for the best quality in cryptocurrencies, but also timing the next bullish momentum move? It’s exactly what we cover in our crypto investing research service >>
