The simple truth is......people are scared! There is a lot of money on the table at stake when it comes to cryptocurrency. Some have millions riding on the success of bitcoin. But if you are like the majority of crypto enthusiasts and traders, its more probable that you have a few thousand dollars worth of coins that you are holding or trading with, hoping to score a big win and boost your account to the moon. But right now, the price may be feeling the effects from a more unlikely source. The Newbie!
Let me explain. During the big run up in December and January cryptocurrency saw an influx of people who wanted in. Coinbase accounts skyrocketed. Everybody wanted a small piece of the bitcoin riches. Once the run peaked, we had the normal retrace that would be expected by most investors and traders. To the person that just put there money into this brand new system, it is heartbreaking. People panic and they want out. The people with the weakest hands exit first in a boom. It then becomes a slow domino effect. Some people have the patience to hold on. But even these people begin to feel it when the price slowly declines. The average Joe that bought some bitcoin is in a different mindset than a trader or person with long term interests and foresight. Bills need to be paid, and most people that see their money slowly going down are going to want their money. If you are a good trader, you may not have felt the effects of this bear market and have been trading down the whole time, still extracting cash from the market or accumulating shares. So with so many people on the edge of trust with bitcoin, we are seeing a complete shakeout. It has happened before and this is just a wide swing, which is expected with a concept in its infancy. If you understand the technology behind cryptocurrency, then you are able to see that this is just the beginning of something that is going to slowly be adopted by everyone with a smart phone. The rebound and upcoming long term bull run will be just as violent. It will be the run that turns the current newbies into survivors. And the ones that sold will be frantically buying back in as fast as possible.
The search interest has died down significantly from it peak at the beginning of the year, but it will swing back in a big way. Every day more and more retailers are starting to accept cryptocurrency for payment, so the trend is inevitably going to come back. For right now, just weather the storm, research your solid coins, and wait it out!
If you HOLD for long term: Turn off your trading app and go for something else. If you are trading Short term: plan to sell your coins when BTC reaches certain levels.
Agreed. Long term traders should spend time with family and friends instead of looking at the portfolio again and again.
yeah, I agree. it is two totally different worlds and way of thinking. If you have a trading bot, I would look to make it a balance in both areas. Full time day trading can be stressful for some.
I dont rely on trading bots honestly. I prefer to trade by myself even though I'm terrible at it. But it helps me learn along the way.
@photowhale there is always a pin drop silence before storm kicks off. Bitcoin is going through pin drop silence since 6 months and ready to kick off bull run. Fingers crossed.
I have full confidence that this next run will be bigger, with a lot more money coming into the market. The concept has gone through an initial phase of introduction into the mainstream, and the next phase will be major acceptance.
To be honest, I strongly in the favor of a major drop to below $4000 before reaching back to $10k. I will put my selling target when BTC reaches $6700 and $7100, then will buy back later.