I woke up today to a lot of messages with "is this it? is this the crash?" and "what is happening? are there any bad news?" and so on.
Remember that not all dips require some bad news to have happened, last week's South Korean news about a potential bad were overreacted, mainstream media does that a lot where they take rumors and post articles about them as news and the investors, especially new ones see it as a reason to sell. It causes an avalanche effect where they see everything going down and they want to protect their $ value so they sell, often at a loss because they are scared that it will drop even lower.
The smart traders are the ones that buy the dips, always leave aside some extra $ or Bitcoin to get the altcoins they are going to hold longterm cheap during times like these. They know that nothing is going to stop these, even if South Korea were to actually ban trading cryptocurrencies it will be a matter of time until another country picks them up and becomes the next place where most of the trading happens as we saw with Japan when China started regulating crypto trading and ICO's more.
Here is something that could be a reason to recent downtrends in price and why I am buying more, but remember that traders often overreact and corrections come faster than expected.
As Asia is still one of the dominant trading and holding of cryptocurrencies, in about 3 weeks it's Lunar New Year over there which is sort of like their Christmas where they spend a lot of money on presents and travel. Here is a Forbes article on Lunar New Year where they project a lot of people travelling outside the country this year and they expect an approximate of over $100 billion in spending.
Here is a chart that shows the last 4 years of Bitcoin price around this time before Lunar New Year:
Be aware that each year the amount of traders and new investors has grown, many take out profits for this event while many panic sell because of the movements. It's hard to call the bottom, there is a lot of misinformation floating around lately which can cause the dips to go on for longer than expected while long-term thinkers are buying in on each of them. While many may be aware that these dips occur often it can also be a way to re-assess your investments from currencies you've only bought in to ride the recent waves of pretty much everything going up to trade those profits to something more stable. Like I said in my last post I believe this year will filter out a lot of currencies and projects from the top 100 at least and we will be seeing a lot of value float away from some to others that have a lot more going on for them and have true real world use cases.
I personally just picked up some more Steem today at 33-35k satoshi and am holding some more BTC and other alts to trade them for Steem in case it drops even further. No reason to panic, this is a good time to focus on buying those dips or if you are not a trader post a bit more actively to get that cheaper Steem. :)
What are your thoughts on this? Do you think Lunar New Year is a big reason to the recent dips in prices?
https://steemitimages.com/0x0/http://ipfs.io/ipfs/QmRz4JEqvTEoCQK9V8ssoV7LKyb2fHBpYEp7xZyqnQL2AP
Exactly!!. The best thing to do is to buy the dips now. If you can't buy then Hodl cus you'll be happy you did later.
I believe the crypto market is still in its infancy stage and will grow bigger than this hence more returns and profits (for the investors).
There's no reason to panic and sell now. Don't do that as you'll only become a weak hand and sell to those that have been praying for you to sell. In a short time, prices will go up again..
Thanks @acidyo for this post. It came at the right time and I'm grateful.
Happy Steeming
I wish I had more fiat to buy with cause I'd be chomping away at these sales!
I invest more into now, thank you for your info. and keep up the good work.
I’m not worried about it I’m gonna go shopping while everything is low this is the chance to get some of the expensive coins. 😝
"There's no reason to panic and sell now. Don't do that as you'll only become a weak hand and sell to those that have been praying for you to sell."
So true. They are praying for you to give them money from Heaven
One of the big problems is with a highly speculative market, there ARE many people who NEED regular profits to survive.
They can not afford to have large paper losses then take out their 'salary' from a much reduced holding. So they sell, taking a small loss, fearing worse - which does come, but doesn't hurt anybody who doesn't book the loss.
Keep taking small 'stop loss' losses and soon you will have nothing to invest at all. Or have to make 500-1000% returns to recoup. Those returns aren't there. Just plenty of wild swings engineered for the most part by manipulators who capitalise on fact-driven movements (like fears of a Korean crackdown) to pull the bottom out of the market and buy up cheap. Pump then dump again
Easier said than done but you have to hang in there. Crypto has been there before and come back even stronger
When the market manipulators want your bitcoins in a dive there is only one answer
FANTASTIC POST............................................
Great post
Doesn't matter how much market goes down. You are not in loss until you sell your crypto.
Therefore Just Hold It.
This is not true. And its a big mistake to ignore. Ego and overconfidence are the main features of loosers in the global financial markets. You should proove you ego and be more respektful to the market.
The market is always correct - nothing else. The marcet makes the prices and this is the main feature. There are more than 3000 coins meanwhile in the market. And nobody knows which coin will survive the selection porcess of the future. Propably only 3 or 5 coins - evenutally 6-12 coins, but not more from my point of view. This means that 99 percent of all coins propably will be worthless.
What do you think will happen, of there is an Amazoncoin or a facebook coin in future?
Difficult to say what then happens to the other cryptos in the meanwhile. I don´t like the overvalued comanies like Amazon or facebook and its censorship - but they are very big and has enough financial power to restructure the complete coin marcet.
Do your own due dilligence. And note: It makes not sense, what you or me are thinking. In the markets people acting which are able to press a button and to sell some millions within a second and so on.
Good luck. This is casino money at present. Monopoly - it can bee a winner game or a looser game. Future will tell us more...
https://steemit.com/crypto/@trainingbrah/xby-wants-to-go-up
That's awesome, and totally how it seems to rise!
This is beautiful
This is simply beautiful!
lol
Great logo! I couldn't help but ponder one of two things: Would the 'designer' of this original thank you for putting their products in the minds of the people; or, dare sue you for copyright infringement?
Of course, you could argue that you've never seen their logo, or heard of their company; but, uhm...I'm pretty sure all eyes would be rolling...'yeah, sure'...;+)
Quality idea @dragonking. Of course, I now realize this might be pixabay...lol...
Peace.
Yeah I also made a post about it.
https://steemit.com/cryptocurrency/@eirik/only-the-weak-hands-are-selling
The main idea is:
Good perspective
Once you've been in crypto for a while these kind of dips are like water off a duck's back. I'm sure a lot of new people will be panicking, I know I used to. For more experienced investors like yourself this should definitely be seen as a buying opportunity though!
I am not worried about this dips because I already know crypto is like this. And since I am just holding and not trading (waiting for bittrex to allow new accounts) I am 100% relaxed.
Perhaps for the traders is stressful because they need to figure out their next trade. But for holders it’s not.
Lucky those who manage to buy cheap alts in days like this.
I agree! I'm just holding, too. I'm looking at this as just a time to buy more.
I'm hoping it'll stay down here for awhile so I can scrape together some fiat. I love a good sale!
When I checked out the charts today when I woke up, I'll admit it, I got a little bit shocked when everything was red :D But yeah, there's no reason to worry because these things happen all the time! Cryptos always recover, so it's the best time to buy something.
Yeah, I mean, it's a lot of money vaporizing. Certainly doesn't feel good. If you are able to buy some and you get used to this price though, it'll feel great when it shoots back up.
Is it a cheap market to buy into? Well, we are trying to make comparisons with the DotCom bubble. Total Market Capitalization of the sector. As of today (16 January 2018), Crypto market is valued at around 588 USD billions while the DotCom bubble at its heights had a figure of higher than 4 000 USD billions!!! Now let's add the factor of worldwide participation opportunity for the crypto sector, while DotCom was mainly a local US event! Then we have to assume a global market growth and monetary expansion during last 18 years. So, you can briefly imagine how big the REAL crypto bubble can grow! More details here
https://steemit.com/crypto/@p2port.com/cryptocurrencies-bubble-or-not-dotcom-example
@acidyo Agreed.
People are panicking, acting like everyone forgot what the crypto market cap was like 1 year ago. Everything is fine, those dips are great chances to buy some cheap crypto. Let them panic sell, I'm panic HODLing. ;)
Come on, everyone, it's the market! It has its ups and downs!
Sometimes I think we're all a bit too spoilt by cryptos constantly exploding and skyrocketing! Just have a little patience!
At the end of the day you have to ask yourself where you see the prIce and market being a few months or even a year ahead from now. If the answer is up then why the heck sell right now ? The market can switch at the drop of a dime and you might have to buy back a lot more expensive or you lost your chance to keep a decent stake in that crypto you like so much
Just keep posting and having fun @dandesign86. I acquired most of my Steem over a year ago when it dropped from $4.00 to almost nothing.
Many rage quit, complained, powered down or slowed down in posting. Very few kept going during that period and the ones who did stacked a lot of Steem.
My hats off to you for sticking with it, it's easy to say that if I would have been on Steemit that early and that happened to me I would have stuck with it and invested a bunch.
If you weren't there at the time you can't understand the strength and conviction it took to stick with it. My hats off to you - because the people who stuck around at that time made sure that Steemit is alive today !
Great time to buy the dip in your fave coin! But if you are going to buy today, wear some thick gloves!!
I just sit back and relax because I know it will go back up eventually , I used to panic before and sell but I got a whole year ahead of me :D
This a good time to buy STEEM. IMHO, does BTC, LTC or ETH can rise 5 times from this bottom say, BTC $10000, LTC $175, ETH $1000. But STEEM has potential to go 5 times- $17.5 and even 10 times $35 form current low of $3.5. I understand diversification, but STEEM is undervalued and potential to rise higher than any other top crypto- why? Because its big events are still ahead- HF20, Hivemind, easy-signup, 1-10M users, ultimately SMT. STEEM is not even traded in three big Bs yet (Binance, Bithumb, Bitfinex).
Why would you hold BTC? BTC owners legitimately should be panicking, it's one of the few cryptos where adoption is going downwards.
Yup, at the bery least HODL. I had already spent my "limit," but i think im going to buy a little more this weekend depending on how it drops.
This may be the final downwave on the road to it kicking up again. As such im going to watch the next few days carefully and see if i want ti buy a little more.
Definitely will find an entry point to buy those precious Steem goodies. How low can the dip go though? :'o
The dip is for real. At least you had some cash to buy at some point in this dip. I'm trying to figure out how to put more in but I don't think it'd be wise in my budget :P
I understand what you mean bro hahaaha
LOL
Haha i just made a similar article in Chinese. Undoubtedly it’s just another chance to buy the dip.
Haha i just made a similar article in Chinese. Undoubtedly it’s just another FUD the whales try to create by spreading rumours to let them buy the dip. Just HODL on to the coins that we have faith in :)
Nice post. You are right. This is just the normal market. Welcome to being in a volatile business. This also provides opportunities.
Great analysis and excellent timing for the post!
An article actually just came out in the Financial Times discussing the same explanation:
https://www.ft.com/content/25fbcb1e-fb15-11e7-a492-2c9be7f3120a
This used to be true several times but who know if it will be the case today. When MTgox collapsed the 'dip' lasted for years. Growth has been ridiculous in 2017. This was long overdue...
Yes it is a good idea to buy
I am not worried about red days in crypto.
Last night before going to bed I read an article about China cracking down on Chinese miners and instead of freaking out and converting to teather I calmly went to sleep with my hodl face on and woke up unfazed to the big drop that I was expecting to see...if anything its a good time to buy.
China needs to quit being a huge jerk.
Buy the dips.
🗅
What will this massive power down mean for the value of Steem?
Start power down of 71,456,407.984 STEEM
See https://steemit.com/@steemit/transfers
This scares me.
Thanks for the information..the best to do is to buy the dips now .i believe the crypto market is still in its infancy stage and will grow more than this than this hence more returns and profits for the buyer.
I believe in the power of HODL.
I am @earnmoresteem and you got a 5.88% upvote courtesy of @malonmar! I invite you to send SBD with other post in memo and I will upvote you this new post.
Crypto sale is back again
I think bitconnect closing up shop shook a lot of people. "If government threats can close up bitconnect... how safe is my bitcoin?" The answer is, infinitely safer... but, their bitcoin is now your bitcoin and you bought it on sale. Congratulations!
This new year theory is good and the charts back it up. I should remember this for next year... Thanks!
I bought EOS IOTA and ADA in this sale and. Steem is holding up well in this crash.
Excellent analysis and good graphics.
Asian retail investors don't invest to make spending money. They invest to get Jack Ma rich. They will eat only ramen for a month and walk 500km home for New Year to put money into crypto.
"taking major gains to buy some cool shit"
FYI, Lunar New Year is Feb 16 this year.
If you believe in crypto, actually this is the good think, because you can buy more at lower prices. If nothing, this is buying opportunity.
I always say to everyone asking for recommendations that cryptocurrencies should be bought when they are on sale. You buy clothes on sale, so you should buy crypto on sale as well. I am doing great with this idea.
I am not concerned at all, in fact I am excited to see this take off
Oh really..thanks for your information..it is really smart to buy a dips now.
I think the price will grow now again.this is only for short periods.
Steem is to high to buy.It will go more down,as always.And more up with time. :)
Yes, you are right boss. I also wrote a post when same thing happened in December
https://steemit.com/cryptocurrency/@fatherfaith/cryptocurrency-downtrend-a-blessing-in-disguise
It's hard to hold, but you just gotta remember what it's going to do in the long run!
Today, 17/01/2018 and tomorrow, 18/01/2018 are crucial in determining the medium-term trajectory of Bitcoin in the crypto markets. If BTC/USD doesn't fall below 8560 by 12:00 GMT on Friday, that would be a very strong buy signal. Before then, it is best to stay on the sidelines. If however, BTC/USD falls below 8560, we are going to see Bitcoin drop to 4000 within the next three weeks.
Right now, traders should either be selling or waiting on the sidelines to see what happens by Friday !
We just got to keep HODLing 💪
👍
hay this information is very important, allow me to translate into Indonesian, because in our country many are panicked with the price drop today,🙏🙏🙏
I agree, although I am still trying to figure out the whole Alt coin thing. I know that any market runs in cycles and the whole sell high buy low thing is real. I wish that I had some money to put into more alt coin at this time but I don't today if we are still in a dip on Friday though I will be. Thank you for they thoughtful article.
Buying bitcoin and other crypto like a crazy. It like giving candy for free.
Hold, buy, hold, buy.......
Resteemed!
We trust you! Thanks for informative review :)
Don't worry be happy!