Cryptocurrency market grave selling, are we done or not?

in vincentb •  7 years ago 

I am going to make this article very brief.

As it is obvious overall cryptocurrency market supply is directly dependant on the demant of the bitcoin. And for such reason we could see some decent selling again as a continuation of the Christmas selling, the whole market in red.

The question is whether are we done, or bitcoin is actually going lower, or even worse?

I leave you with two images as an idea what might going to happen. The first is weekly chart from the year 2013:
Bitcoin chart 1.PNG

And the second is weekly now:
Bitcoin chart 2.PNG
What do we have here forming?

It is very possible we may see this scenario to take place again. We may see history repeating itself. But what are you gonna do with it? Hodl or not, for you might be hodling for months...

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  ·  7 years ago (edited)

The crash you are showing is from some point in February, 2014. Up to that date, the exchange Mt. Gox was the biggest player in the bitcoin economy by a long shot, but the site was hacked and around 7% of all bitcoins were stolen. The site was unable to fulfill withdraws and users reacted by panic selling, undermining bitcoin's reputation on the way.

The main factor on the decrease in price we are seeing today is the uncertainty about the new regulations that South Korea might impose on crypto trading. While this will have a major impact on price for quite some time, it's unlikely that even the harshest measures could cause a price decrease as strong as the one from the Mt. Gox fiasco.

If you ask me about my personal recommendation, it would be something like this:

hodlor.jpg

I'm not going to lie. If we see a catastrophic crash, I would certainly not be happy, but I would find that as a great investment opportunity, specially after the media goes silent on crypto. I'm a firm believer that the technology behind crypto, specially the one involved in smart contracts, will end up causing mayor shockwaves on the way global economy works.

  ·  7 years ago (edited)

Thank you for your comment @pk170!

Yeah I agree with you on many points here. What I illustrated here is a possible scenario. I fully agree with you that I would like to see more of the bad news for me to fully believe history's gonna repeat itself. However I must say there is still such case possible. Especially if we're gonna see another leg down making lower low then I believe it's nothing than the catastrophic crash.
So I personally will be cautious about such scenario and adapt my porfolio to it on the next rise.

PS: Love the picture, had me dying...

Of course. Talking about crypto this will always be a possible scenario. Even in the stock market which is supposed to be way more stable it would be possible to se a total collapse.

What I would also like to ask is what sets the difference bitween a colpase and a correction? While bitcoin got close to half of its peak value, let’s remember that this high price was really shortly lived, while the current price is still higher than a couple of months ago.

Crypto market is highly volatile at this point, and, while risky, that’s one of the main reasons it is so interesting.

Glad you liked the image! It’s one of my favourite memes!

El bitcoin siempre nos ha enseñado para esta época empenzando el año, siempre es lento y tiende a bajar, pero luego se recupera y lo hace con fuerza, mucha paciencia y éxito.

  ·  7 years ago (edited)

Sorry man, I don't understand :) :) lol :)
But thank you for the opinion @coriantun

I think we’ll see some green in the coming weeks!

  ·  7 years ago (edited)

Could be, lets se what market gives us.
Thank you for sharing your opinion @cryptodollar1!

Thank you for sharing. Vincent B. Upvote!

  ·  7 years ago (edited)

Thank you @cryptoryno33!

My pleasure. Keep it coming!

i know btc and cryto generally always rebound. the market fluctuations is always so as such many wise folks makes turns of money. thanks for sharing

Yes I agree, cryptos ain't going anywhere! But the idea of hodling possibly for months...
Thank you for your comment @kenhudoy

Sure and most are moving for gold and I stand for steem. Updated on same issue

Steem is an exception for me. Whatever market's gonna do, I'm not leaving my steem lol :D Only cause of my short terms I'm cautious about the market.

Yeah quite volatile a market. Nice option and in steem I stand 💪

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