Why Did The Price of BTC and Altcoins Drop So Much?

An astute investors instinct is to remain greedy when others are fearful. The same instinctive investors weather the storm to collect the king's ransom.

Well right now is ‘NOT’ the best time to catch a chainsaw. You may lose some fingers. I want to see speculators out of the game. Bitcoin will continue to fall as long as speculators (rookies) are willing to sell. It's called weak hands. These same rookies who entered the market in September 2017 during the era of rapid mainstream crypto attention inflated the BTC price to speculative heights. FOMO...!!!

FOMO: People see other people making a lot of money and they just want in on it. The housing bubble is a good example of that. “People thought another person would always want to buy their house from them at a higher price.”

Bitcoin's bullrun was an unnatural pump caused by mainstream media. It attracted "rookies" (overnight social media crypto experts) who never planned on sticking around. They just wanted their LAMBO by Xmas Dec 2017....The actual technology, or even the way it worked, was hardly a priority.

In late 2017, rookies were buying up BTC with their credit cards and other forms of debt. This was a danger for Bitcoin. There have been many financial crashes and bubbles in markets that have begun with foolish speculators.

If the latest current correction has indeed eradicated these types of speculators, then all the better.

The loss of the mass speculators could be just what Bitcoin needs.

The long-term prospects for Bitcoin is still sound, even if the price is lower, without such speculative rookies. After the tech bust in the Year 2,000...the tech ecosystem grew back bigger and better. The Internet and dotcom space are truly alive in 2018.

The crypto market will correct. I really don’t think it’s because of the futures market, China FUD, or government plots. It is also the adoption and use of BTC. Bitcoin and the crypto world is simply not ready to handle an influx of billions of users. However.... this day is much closer than most think. There is billions in institutional monies ready to be deployed. The month of APRIL should see monies from the sidelines deployed in mass. This technology is evolving at exponential rates. I will continue to #HODL and Mine BTC/BCH.

For the time being...I don't see Bitcoin going below $5k, since that would mean the miners making a loss on mining.

All eyes right now for me is the 200-exponential moving average. The 200 EMA is at 6,000. If breached, it would signify continued weakness.

Bitcoin's rise from 7k to 20K happened about 50% faster than its fall from 20K back to 7k. Bitcoin's decline could potentially pick up if 6,000 is breached.

Some Fundamentals at play right now.

1- FEB 6th is extremely important for the cryptocurency market?

On the 6th of February, the heads of the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (SEC) are set to testify on cryptocurrencies during a U.S. Senate hearing.

2- Credit card companies are now blocking the funding of accounts in exchanges.

3- The Indian government added fuel to the fire, announcing it wants to “stamp out cryptocurrencies.”

4- Facebook banning all ads that promote cryptos, including Bitcoin. According to Zuck’s people, Facebook has to protect users from “financial products and services frequently associated with misleading or deceptive promotional practices.”