Crypto Dives AGAIN? Trading and Some Warnings
Bitcoin is down yet again - it's the January blues. As always, the same question is on everyone's mind: Opportunity or trap? To which I say, I have no idea! But given that volume seems to have been declining while Bitcoin has been rising and vice versa these past few weeks, this suggests that upward momentum has been relatively weak and downward momentum is stronger. This is a valid concern.
More importantly, given I allocated what I wanted to allocate at this level last week, I won't be purchasing any Bitcoin. I remain firm on the level mentioned previously at $8,300, but otherwise will not be buying in to any further dips or corrections. I also won't be buying to upside unless there is a significant sign that suggests more bullish activity (e.g: high volume to upside).
I spend a decent amount of time in this video discussing "hot" cryptocurrencies, currently Vechain but the idea really appeals to all of them. Perception is so far detached from reality now with Vechain (but again, could be applied to any other "hot" cryptocurrency) that it has become exceptionally risky.
Tacking blockchain onto RFID doesn't suddenly remove all the inherent issues that RFID has had for (wait for it) decades now. Just like Raiblocks has corrected nearly 50% since I talked about it being the "flavor of the week," I would be cautious investing at highs for Vechain.
I also wanted to point out that a lot of cryptocurrencies are taking older technologies and tacking blockchain on it to capitalize on this craze. That isn't to say these are scams, which some people seem to unfortunately mistake my comments as insinuating. Rather it is to point out that blockchain is not an end all, be-all solution. Note that "reducing counterfeits" was a key argument for RFID 20 years ago and look where it is today in that specific use case.
The point of my little "rant" in this video is that while it may seem that cryptocurrencies are brand new, there is really only a few new elements and a TON of modifications from there. Understanding the base technologies which are decades old will help you separate the substance from the fluff. And trust me, there is a LOT of fluff.
Moving back to markets, as for altcoins, I am really only looking at a few that I like which are still a little too high for me to want to buy more (e.g: Monero and Steem). In short, I'm buying nothing in this dip currently - you don't always have to if you feel comfortable with your allocation.
What are your thoughts on the market and irrationality? Let me know in the comments below, thank you.