Crypto crash in uncertain times can be a little hard but let’s cheer up

in Project HOPE8 months ago (edited)

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BTC fall

Wow wee… Today, cryto markets fell down, in the most crazy fashion and I could not help but notice it enough to write on this.

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The worrying thing is BTC is below it’s old strong support of 6500 $, most of us think that as long BTC holds to 6500 $, then its ok, it would climb up to 12,000 $ or more due to upcoming halving event on May, where BTC miners rewards get slashed again by half.

Post halving period, BTC usually reaches ATH, this time, the crypto world was talking about BTC price going to 1,00,000 $ or 2,50,000 or even more. Good news I think is now the RSI is looking oversold at 19 level, so accordingly BTC current valuation is very cheap, it’s worth way more. The question is if the bottom is reached and looks like it has not as prices of BTC is tumbling below 5800$, who knows it may go till 3315$ as well, the price it was at Feb last year.

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However, in between these levels there are several support zones I feel -5636, 5105, 4722, 3775 etc and maybe BTC would find support anywhere at these levels.

Carona virus related news causing fall!!

Well, I should feel quite terrible, but I feel nothing, well, it’s not in my hands if Carona virus news that is causing panic sets crypto to tumble down.

https://cryptopotato.com/coronavirus-infected-crypto-bitcoin-tumbles-below-6000-to-its-lowest-price-since-may-2019/

I just read that Trump banned European passengers from flying and landing in AMerican soil and as a result of that this reaction followed. It’s just that most people are not investors, they freak out when prices fall, and prices react positively and negatively to various world news. I don’t fall into the category of a FOMO crypto creature, I am a more savvy crypto enthusiast cum investor and know that BTC prices would come back to normalcy, sometime when volumes pick in. There will be the smart creatures that would invest in BTC and other cryptos when price is relatively lowest and then enjoy profits as BTC goes up(: … now looks like a good time maybe?.

FOMO investor psychology been played out I guess?

There is so much in the crypto verse with margin and futures trading that when prices fall, they fall double due to liquidation and stuff. I am glad that I am cool in these red uncertain times in crypto, because just last year I would have FOMOed, panicked and sold out at such a low price, caught between ruthless selling in exchanges with prices in every sell coming down and down.

I used to get greedy and buy when prices were going up and sell when it was going down, such an idiot I was, I finally changed my mindset, to wait long term and watch price action, notice support and resistance levels, volumes, and momentum indicator, moving averages but in times like these when there is crazy panic selling, technical indicators not working actually, only know when price is below 200 Moving average in daily chart, people sell in panic. However, previous price actions and support levels can guide one on seeing where the price will bottom out.

Multiple crisis around us sadly but crypto I feel is the future

Right… I understand, it’s crisis situation - global economy, Carona virus scare and political uncertainties besides all that is happening in our Steem platform. So, just chill for now. I know money is precious, hard earned and how much it pains when it’s lost even in investments, but I am sure crypto will be the future and prices of BTC, ETH and other cryptos would normalise. I can’t comment on stocks, I don’t follow much, but I hear, the risk to invest in stocks is high anyways and there is more likelihood with the current global economic conditions that stock prices would crash and stuff, as recession would come about.

US Dollar value can be affected due to Fed rate cuts

It would be interesting to see BTC’s price reaction, will people invest their money in BTC besides gold, silver, LTC, ETH (main cryptos) when crisis sets in. I hear that with the Fed in the US cutting rates, it impacts the interest the depositors earn on their deposit money and there is likelihood that in near future US dollar value would tumble down. Since US dollar is a global currency used as foreign currency reserves by the world, it’s going to have a crushing impact world over. So, anyway, crash is emitent, and crypto, well if it’s viewed as hedge against fiat currency then prices would shoot up just like how it tumbled now.

Factor in the Indian population investing in cryptos with it becoming easier currently

India, the second most populous country in the world now is free to trade cryptos as RBI’s ban on banks to not serve exchanges and any entities dealing in cryptos is removed as of now. When this major big population take to BTC investing I can imagine that surely BTC and crypto prices would boom and that time is not far away as halving is just a few months more.

Dilema for even us on where to invest our money nowadays

Anyway, I am not savvy enough to give investment advise these are my ramblings, please have your own view based on your study and understanding. However, just a thumb rule, invest only what you can afford to lose and definitely not all your hard earned money. Also diversify, cryptos, gold and silver ETFs, maybe pension and stuff, besides base investments on insurance(life and health), so your covered during troubled times. Cryptos, should aid in wealth creation, I feel, but of course monitoring, reading and understanding it is important. It’s important to have financial wisdom, because even educated are at risk because we could earlier afford to believe that investing in Government bonds, mutual funds is good and safe, but even financial advisors who will sell all this, may do it for their sales targets rather than recommending the best for you.

Plus what if your money is not safe in banks?.

https://thewire.in/banking/watch-wire-business-report-yes-bank

Where can you put your hard earned money? I don’t know about banks of other countries but in India, a private bank Yes Bank, had NPAs, with Corporates that are not capable of paying back money given loans which is now unrecovered. Due to this, Yes bank did not have their depositor’s principal money. I heard that RBI intervened through some measures such as public sector bank State Bank of India(SBI) buying a stake of Yes Bank. Now with that move, Yes bank gets funds to provide for depositors and retain employees who would otherwise have been laid off. However, this indeed even stresses the educated on where they can put their money. Hard times...anyway, I can sense a lot of stress.

Keep well in these Carona virus epidemic times!!

I end this by telling everyone to be careful out as Carona virus is out, you know what to do. Wash hands with soap, use sanitizers before touching your nose and mouth when outside in public spaces, and stay away from sick people and if you feel sick stay indoors, take rest, take plenty of rest and fluids. Carry clean handkerchief or tissue paper and sneeze closing your mouth on the handkerchief and not on open surfaces!!

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Coronavirus is affecting the world economy a lot. Even Sensex just tumbled today with 2k+ points decline. BTC Crashed. The market is heavily volatile right now. Let's wait for the market to stabilize before investing. :)

Very correct

Dear @mintymile

Interesting choice of topic.

Right now I cannot see any way for BTC to bounce back. Supply will be only increasing and demand probably will slow down.

With unfolding recession many businesses and individuals will face trouble with paying their loans, morgages and taxes. So liquid fiat will become very valuable for everyone around us.

Having crypto in our porfolio is an investment. Usually we invest what we can lose. So priority of it isn't that great. And if we would face threat of losing job or shutting down business - then we will sell of however much we need to simply survive.

I'm personally expecting that BTC will drop again to 3k and STEEM will go below 0.05$ within upcoming few weeks. And halving will not help. It surely will reduce selling pressure coming from miners - but that's all it can do. It will not create demand. And panic sell will continue.

Also - all previous support levels do not count any more. Not in current situation.

Plus what if your money is not safe in banks?.
Where can you put your hard earned money?

My solution is to have debt and savings within same bank. I've morgage and savings within same bank and I'm quite confident that situation when bank is taking my savings and yet demand paying loan will not happen ;)
Solid read, upvoted already,
Yours, Piotr

Your provably right, BTC could come down to 3100 levels, post halving things would come back normal I guess. Wonderful situational logic, you have mentioned. It's recession time and it will be interesting to see how cryptos will do when it occurs and plays out fully. I believe BTC and other alt coins would go up in long tern, 1 -3 years, still. Right now, selling may continue, but below 3100 if BTC goes, it's going to be hard to have faith in this belief, but for now, I believe, BTC and other cryptos are goinng to rock.

I really do not understand the reason for the sudden fall in price but this is alarming and if the rumour is true that conoravirus has been the cause, then I think we are in for some crash.

@ben-edom . Hey check this out .

See, this is short term, over long term cryptos should pick up. Already some recovery has happened.

Why this happened. Well... see the video link I gave above.

There is panic and as @crypto.piotr says, people are selling to get cash, so they can pay stuff. That virus means economic activity is coming down, people are not having cash, so they sold.

Even gold fell by 3% it's perceived as safe haven.

Also there was liquidity crunch, like everybody selling especially those in deriaviative markets doing margin trading...there was very less liquidity with so much selling prices crash hard and hard.

On traditional markets too, they also fell when though FED and other banks are giving out cheap money, so institutions can buy stocks keep it stable, plus FED is going to further buy stocks to keep market intact.

We may have more sell offs, panic... but when it ends, we can buy at lowest point and wait long term with dollar cost averging method, buy small amounts of crypto every month and stuff.

Watch these videos -

You will feel better and less panicky seeing those videos garenteed!!

All we can do is keep ourselves safe and not invest rashly, keep some cash for dialy use and let crypto have it's crazy cycles, we are crypto enthusiasts, we love crypto and we are in for the long term surely!!

I love to see how responsive you are buddy :)

I really do not understand the reason for the sudden fall in pric

Credit crunch.

With unfolding recession many businesses and individuals will face trouble with paying their loans, morgages and taxes. So liquid fiat will become very valuable for everyone around us.

Having crypto in our porfolio is an investment. Usually we invest what we can lose. So priority of it isn't that great. And if we would face threat of losing job or shutting down business - then we will sell of however much we need to simply survive.

I'm personally expecting that BTC will drop again to 3k and STEEM will go below 0.05$ within upcoming few weeks. And halving will not help. It surely will reduce selling pressure coming from miners - but that's all it can do. It will not create demand. And panic sell will continue.

Yours, Piotr

I am scared there might be serious crises with the way the economy is dropping fast, I really do hope that an end comes to this conoravirus issue soonest.

Watch these videos, you will feel better @papa-mensa -

and https://youtu.be/cWPr1BObf5o

Yes, we may be in for the crisis, so let's gear up to see how we can handle it!!

Key to that is understanding, what's happening in the macro economic arena, start with that, get clarity and gear up baby.

That virus is serious and WE are in PANIC MODE for a few more months now for sure, post that I am hoping crypto field will pick up well, especially with economic situation going to collapse, but will BTC be able to handle that, let's wait and watch!!

Going to be ineresting for sure!!

Hi @mintymile

All the markets are currently very crazy, that was to be expected, I consider that it is a normal reaction after everything that happens in the whole world, the PANDEMIC factor has definitely left havoc on all the stock exchanges in the world, therefore the BTC does not escapes from that virus.

But after reading your publication what I liked the most was this sentence:

I don't fall into the category of a FOMO crypto creature, I am a more savvy crypto enthusiast cum investor and know that BTC prices would come back to normalcy, sometime when volumes pick in.

I share that opinion and I am among those smart investors.

Greetings.

This might be the recession that a lot of economic analysts have been talking about but i never expected it to hit hard on cryptocurrency until i heard Washington Speech.

Dear @mintymile

I just read that Trump banned European passengers from flying and landing in AMerican soil

It's so strange to see him one day talking that everything is under control , and very next day introducing such a huge restrictions. So unpredictable.

Also in my opinion most experienced investors and all those who simply got into real estate business understand, that money will stop coming soon and debts/loans/morgages need to be paid.

So those people are pulling out from any asset they have. To be able to pay those debts.

Interesting read. Upvoted already,
Yours, Piotr

Trump has always been unpredictable. Although there is a pattern. First deny and then when that fails, find someone to blame.

Agree too that people cashing in to pay bills. Dark times.

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 8 months ago Reveal Comment