This is absolutely a buying opportunity, and here's why:

in cryptocurrency •  11 months ago

Right now, Bitcoin and the entire altcoin market is taking a beating.

It's not even a guess as to what is causing the selling pressure, it is very clear.

China came out a few weeks ago and banned ICOs.

Upon first glance that seems like it would be good news. The ICO markets have been awash with fraud and shysters after the quick buck. A good cleansing of those markets would be great for the industry. 

However, China wasn't done yet.

Soon there after, rumors started circulating that China would soon be shutting down all the domestic cryptocurrency exchanges over there.

As you can image that news was quite scary and the prices of most cryptocurrencies have been trending lower ever since.

Then today we got some verification on those rumors as news came out with very credible sources that says China will indeed shut down all the local exchanges by September 30th.

Wow. 

Some scary news indeed!

Now that we have some of the backstory out of the way, here is why I don't think it is that big of a deal.

China currently is/was roughly 15% of the entire cryptocurrency markets in terms of volume.

Not an insignificant amount but also not the entire crypto markets either.

Also, the OTC markets for Bitcoin etc will remain open.

That means that the wealthy in China will still have the option of owning Bitcoin through the OTC markets if they so desire. 

Then there is the black-market which I am sure a few will gravitate towards to get their hands on some coins.

However, the big reason why I think now is a buying opportunity is because the selling pressure is market dynamics related and not fundamentals related.

What I mean by that is that the Chinese exchanges have been told that they will be shut down by September 30th, which means they only have a few weeks to liquidate their entire holdings otherwise they risk being "stuck".

That is exactly what we are seeing today.

Investors in Chinese exchanges are trying to sell everything they can, while they can.

That is not a fundamental change with Bitcoin or the crytpocurrency space, it is a one time event. 

For that reason I think that any weakness in Bitcoin, Steem, or any of the other major crytpocurrencies is a buying opportunity over the next couple weeks. 

Also...

I don't think this Chinese news is permanent. 

I think most likely the Chinese government will figure out ways to regulate virtual currencies much better and then once they have a better handle on things they will reopen the cryptocurrency exchanges that have the proper licensing etc.

When that happens, it will likely be another "gold rush" type of event in the cryptocurrency space again as those exchanges will again be buying everything in sight trying to build up their inventory. 

Those are my thoughts at least.

Stay safe out there my friends.

Image Sources:

http://bullfightingmaza.blogspot.com/2013/02/bear-vs-bull-fight.html

http://weheartit.com/entry/25755763

Follow me: @jrcornel

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The Bitshares decentralized exchange welcomes all and recognizes no government, has no borders and is not subject to the whims of any policymaker.

The DEX cannot be shut down and your money cannot be frozen or stolen.

https://bitshares.org/

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If you have most of your cryptocurrency portfolio in ethereum tokens you can also use the decentralised exchanges https://etherdelta.github.io, or https://oasisdex.com for trading freely.

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Also https://openledger.io built with the same code than bitshares and another one is waves Decentralized Exchange (DEX).

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Ive been using this exchange for a while no need to register https://shapeshift.io/ also using the app for coin market nice to follow your altcoin portfolio on IOS
https://info.shapeshift.io/coincapio-web-and-mobile

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Shapeshift is not really an exchange, since there is no order book and you cannot store anything in there. But indeed, it is a very convenient way to swap from a coin to another coin. You don't need to register, but they take a little fee ;)

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+1 for not having put your ref code here (I guess you have one..)

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you can refer someone to bitshares? What are the benefits?

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By looking a bit further, I found this : https://bitshares.org/referral-program

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Upvoted and Followed. The REAL reason Jamie Dimon of JP Morgan called Bitcoin a "Fraud" (NOT what you've heard elsewhere about wanting to drop the price) a 30-second read: https://steemit.com/bitcoin/@thoughtchain/viral-why-jamie-dimon-called-bitcoin-a-fraud-not-what-you-already-heard

(()

(()

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Bitshares is looking better and better all the time! I keep buying more and fully support the recent initiatives re: rebuilding projects with the help of Hero support.

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Also, apparently Btcc is shutting down Sept 30th!!! That means more of the market is going to be looking for a safe exchange... HELLO Bitshares!

re-steeming this for great content! as well as the info re: Bitshares -- People gotta' know what's going on!

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Their international business is still operating after Sept 30th

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...the plot thickens!

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Yup, once user-base and liquidity improves, decentralised exchanges like BitShares will be the go to places for traders and investors. No government can put this genie back in the box.

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wasnt all bitcoin supposed to be like what ur saying ? how come ur able to keep it afloat ? recognizes no government, has no borders and is not subject to the whims of any policymaker.
how do u do it ? i want to know

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This bitshares thing looks good, gonna check it out!

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That's what we need.

Glorious decentralization so that things like Chinese government interventions cannot happen.
So glad that Bitshares exists.

I am also part of the SiaCoin data storage network now.
Going to set up a data storage center just to be a part of a decentralized network.

Also looking into other options so that I can contribute towards keeping networks decentralized and open to everyone and without regulation.

Upvoted and I have also bought some steem @ 1.04$ .
Hope it's now end of pullback wave.

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very good post indeed - and remember - don't buy all at once - buy gradually over time to take advantage of the average price

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Dollar cost averaging...BTC " "

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This post received a 4% upvote from @randowhale thanks to @uxair! For more information, click here!

You were right, as seems to happen frequently. Looks like it may have bottomed. Unless I have jinxed it. I doubt I have that power.

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Thanks! I hope you don't have that power either! :)

I might be wrong here but crypto is looking to be in the beginning of bear market. Meaning lower highs and lows in long term. I'd be patient, the prices could be much lower for btc and eth in 6 months. Just look at the past.

Also crypto has been going up for 2 years now, there always is an correction and always has been. And when everyone is telling you to buy, you know the there's not much profit to be made by doing so. Just basic trading 101.

I also know this isn't the popular opinion. Some here seem to expect crypto to just go up forever and ever. We are still early, but there will be corrections. It isn't the end of the world. It's rather healthy for the markets. Just hang on tight if you decide to hold and don't check the charts or you'll end up selling at the bottom when it hurts the most.

This doesn't mean the price of 1 btc will just suddenly fall to 1500 dollars. There will be bounces up but they'll always be lower highs. If my prediction is right, this is a start of the first bounce and it will not go higher than 4944 dollars, which is previous high.

Good luck you to all!

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Looking in the past is the best thing. Litecoin was for a while for 50$ when Bitcoin was reaching 1k$ and then it dropped as low as 1.50$ The best way is to buy when new people will forget about Bitcoin and will move on.

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Exactly.

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Great informative explanation. Thank you!

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No problem. I'd rather see steemians buying low and selling high than the other way. Sitting in fiat and waiting for a bottom is the best spot to be at now. Once you can clearly see floor that has formed on a weekly timeframe, then it's time to buy. Not after the price has gone up for 2 years from 200 dollars to 5000 and is now coming down fast.

What goes up most come down.
Reality at it best.

This post recieved an upvote from OPENBULL. If you would like to recieve upvotes from OPENBULL on all your posts, simply FOLLOW @openbull Please consider up-voting this comment as this project is supported only by your up-votes!

nice thought you shared here @jrcornel I always think that crypto is the best investment of all time... Just needed a strong hands to hold on this to become super rich someday... nice article

The Chinese govt is shutting down exchanges to prevent capital flight. They have tight capital controls and crypto is a threat to that. The wealthy will always buy property overseas or similar to move funds overseas. The average citizen does not have that option. I am a big believer in crypto but unfortunately I think it has further to fall before the rally.

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also can you imagine,

  1. If Bitcoin keeps flying higher and higher, and Dollar is keep loosing its value against other assets,
  2. USA keeps the low interest rates, in other words, they want USD to be as cheaper as possible to make sure they are competitive in world trading,
  3. And guess when China sells their goods to USA and most of other countries, what currency China receives?!
    YES YES you were right Dollars! So will China allow to shrink their savings in Dollars?
    And you are right about that tight Capital controls. China just jumping ahead and sending a warning signals, to cryptos: cryptos and Bitcoin itself is watched and will be regulated if needed. But China never said anything if the ban will be permanent or temp, and what further action will be taken when it comes to Bitcoin and cryptos.

I believe if someone's lost the opportunity in crypto currency . Now its his second chance

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True, try Coinflo.me - just launched! Tied to coinbase but social & much more fun!

Thanks for the analysis, it is very helpful. For how many days do you think it will last the down trend for Bitcoin?

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I have a great forecast
i.e bitcoin goes to 1000$.
Lol
DM me after it's happening.
I'll give you a look on my secrets .
Although I'm new to this platform #steemit.
So no posts there but you can see that one of my concept.
It may be a prank....
https://steemit.com/earn/@ronny-handsome/got-free-usd-awesome#comments
Thank
Happy to help

Regards
@ronny-handsome
Spreading smiles.......

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judging based on the slope and RSI i think its over people who wanted to back out have backed out. Its time for the bulls, I surely am one of them!
good luck :)

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Basically China is asking Bitcoin "bend the knee"
We will see how the story will continue....
I is not one day / one week / one month event..... It will last longer: The winter is coming!

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Now until approx. Thanksgiving is the window to buy, after that could go to $10,000 by NYEve

This information really help because i have been since the drop of bitcoin,hope this chinese wont spoil market for us.this info helps alot.

Another post maybe why this is not a start of a domino effect? Will european exchanges close? American exchanges? Maybe that's why people are panic selling...Afraid of the worst happening...I'm a HODL'er and always have been.

This swings in the BTC and cryptomarket have been there since the beginning.
FUD is just part of this game. Bitcoin survived Mount Gox, which was huge in 2013. This is just a tiny blip compared to that. Chinese will find other ways to buy and sell, and quite fast I am quite sure of that. So I agree with you, it's buying time.
Following you!

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Chinese are liquidating now in a panic! Time to buy and hodl BTC

Great post! As Chinese wise man Confucius would say:

btd.png

Haha ;)

Not only in China but the trading of cryptocurrencies has been banned by some other countries like Pakistan. Some of my friends and I were thinking of buying some bitcoins but recently the Supreme Court of Pakistan has also declared the trading of Bitcoin illegal and we are confused if we would be able to continue working on steemit or not :(

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freedom isn't free, costs folks like you and me...

Would love to own more. I only get paid 2x a month and payday cant come in soon. Even if it comes, I've invested as much as I safely can. At this point any increments that I make is not really that significant. Sigh.

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I hear ya bro!

Great post, yes a great chance to buy some cheap cryptos

It's just a market cleansing from all the people that got in for the money and some how inflated the market in a way that a bubble was created because of it.
It's not FIAT MONEY that will drive this market but the understanding and the adoption of THE BLOCKCHAIN TECHNOLOGY and its phase that will change the world.
It is good to see that only the ones who understand blockchain and cryptocurrency will stick to it.
Thanks for the article. UpVoted!

Coindesk.com just put up a cool chart showing China volume has averaged about 10% over the past 6 months. A lot lower than I thought:

https://www.coindesk.com/china-shmyna-bitcoin-trading-way-distributed-now-anyway/

If you believe in the technology, definitely a buying opportunity.

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That is interesting. I had the numbers somewhere between 15% and 20%. That 10% number sounds even better!

Upvoted!
I can say "I told you so!". Bear market is going to last at least a few more days. We need this "purge" to be healthier.
You can find my latests pots on the subject here:

I totally agree - we will see 500K BTC once it hits the fan

Agreed. Until Cryptocurrencies become more widely accepted, not only by large businesses but also by the majority of the world population, these crashes will always occur since the overall demand for Cryptos is not high enough to negate the pressure of a few persons selling out.

When Bitcoin and crypto currencies, in general, become more useful and integrated into everyday life, the smallest dip in price as a result of a sell out will simply be absorbed by the overall, constant demand for cryptos.

CHINA is 100% the best market manipulator in the world. Open your eyes and read about neo coin ico's. Pretty obvious. this is another reason to stick with decentralized exchanges like ether delta.

I agree with you on this. It is a temporary situation. In fact, I wouldnt be surprised if the Chinese backed off on this deal or opened up "official" exchanges. The Chinese have the biggest mining operation in the world and, to my knowledge, the gov't hasnt touched that. Why not? The answer is the Chinese see incredible wealth potential in crypto. Lest we forget, this gave China, a country with few natural resources, access to resources.

China doesnt want money flight...that is their biggest concern. They will eventually balance this fear with their desire to profit off this market. Bet the ranch, with the projections for bitcoin and some other currencies, they will lean towards profiting.

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True, good stuff!

I'm thinking the same thing, just wish I had some money! Luckily I think I'll have a bit of time.

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nice post...followed and upvoted you

Makes a lot of sense

Another great video @jrcornel! More people need to see your stuff, resteemed!

Gave you a shout out on our first episode of Crypto Nights - brief and short video as it was our first one, but be sure to check it out!

Why people don't just CHAINGE THEIR IP THERE and the problem will be solved.

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For a common man going against a govt is scary. For rebels like us its something we do each day.

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I guess the government quote easily can detect traffic to well known proxies, but if there is a system that selects a random proxy every time, something like Tor, then I'd think it was a lot safer and easier. Just a thought, I may be way off.

very thorough and I agree with all of it! It will turn around everyone hang on and let china leave.

I was super upset after checking today's prices. Your post is a big relief.

Thank you very much!

But what if China continues to press bitcoin and it would drop down to the bottom?

Hi Jr. nice post. I posted something to go along with this thought a few weeks ago. https://steemit.com/cryptocurrency/@rondior/don-t-fear-china-s-recent-move-on-cryptocurrency . I agree with what you said and it earned a follow from me. Nice article.

I agree definitely the time to buy. I think this is just China manipulating the market

Hi,
What is your opinion on BTCC to cease operations by 30th of September? A government imposed idea to promote FUD to accumulate cheap coins?

I completely agree with all of your points! I also think this was a great excuse for others to take some profit off the table. I would guess that there are a good amount of long term traders that rode the wave all the way up this year and were just looking for a reason to take some profits. A chinese "ban" of cryptocurrency is a perfect excuse.

And so we buy more, if they are scaring people out of them it is because they have some sort of plan, and I would doubt they re creating their own type of gold back currency, and they only thing I say about that is so the same, buy gold and especially silver but hang on to those bitcoins and buy more if you can, it will go back up and way higher.

Thx for info man appreciate the insight

That is, the fall of the market will continue for another two weeks, until the end of September?

Still waiting to hear the SEC's stance. If they decide to take a stance similar to China's (which seems reasonable) then selling pressure is just beginning and the bottom is not in yet.

However, buying Chinese-concentrated assets like Neo, Omg, and Qtum right now could be a prudent speculation all while waiting for domestic cryptos to face a similar situation in the near future. Just my two cents.

I 'almost' put a few bucks into Bitcoin after it had just come out, but I was far too smart for that. It's a good thing too, else I would have been cursed with about $25 million (at it's peak). I wanna do over.

Alguien sabrá cuanto mas bajara de precio el BTC ? ya me preocupa perder tanto...

I really loved to read about this great analysis. China is like a game chess play, very unpredictable on his next move ;)

I am buying. I have the fear as you can never call the bottom in these situations but I am buying!

Why must we all go mad when something in China happens or is said about bitcoin.
All over the world countries are excepting Bitcoin the Japanese just opened one of the Biggest Mining Farms in the World,
South Africans are mining or farming bitcoins and by that Africa is talking about bitcoin and Acceptance are being talked about.

Ah, I was wondering why all the cryptos were on a downward spiral, and this post explains why. Thanks!

I agree 100%. All the people who 2 weeks ago when bitcoin was $5,000 were saying. " I wish I could have bought bitcoin when it was cheaper" are now afraid to buy in. If you can't handle the huge drops as well as the rapid gains, buying bitcoin when it was $1,000 wouldn't have made a difference, you probably would have sold when it dropped to $100.
Excellent point that nothing has changed with the fundamentals of bitcoin, it's just a lot of people trying to get out of a small door.

Read this and then bought some more litecoin

Be Fearful When Others Are Greedy and Greedy When Others Are Fearful
Warren Buffett

just HODL

@jrcornel What a wonderful and heartwarming Tale..

thanks for the info. I would have to agree. This is an attempt to effect the market value and possibly buy cheap coins. Thanks again for the post.

I have just bought some. This is the best time to buy low. People always complained that they are unable to buy at low prices. These few days are the best opportunities to do so.

diversity is the key. spread a small amount of BTC out over some alts

Agreed, and already did so. Posted this morning about adding to a few of my positions :-)

If we leg down again to the next support I will add there too.

Your article is timely nowadays that we have this cryptocurrency downward trend which is also a way to buy in some cryptocurrency while they are still so cheap and affordable.

fantastic post @jrcornel - this is all about perspective

some people see issues and some people see opportunities!

upvoted and followed.

Alex

Thanks for sharing!
HODL!

posts are very useful friends and at least I know a little more what goes out there and stay vokus @jrcornel

Yes I think you are right that this is a short term setback with the China news and will not have a great impact in the long run worldwide. I think the more disturbing news is what Jamie Dimon threw out. That sovereign nations and central banks create money and that once that is challenged they will shut down Bitcoin. That is why he said it is a "fraud" because governments will never allow it to be money and in the crypto space it is being taughted as new money. We have the same problem with silver and gold the Fed removed it from the money supply and they will never let it back in. On the bright side Dimon did say that Bitcoin could go to $100,000 before this happens and I think it probably will. But what a backlash that will create, when just hitting the $5000 dollar mark has caused all this!

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otage I think you hit on a good point. Why on Earth would the government, and especially the Federal Reserve and criminal banks of Wall Street sit ideally by and allow others to get a piece of their racket? They won't, not for long.

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We heard it right from the horse's ass... I mean mouth, Mr. Dimon.

I think the right strategy for me is going to be to wait a day or two to see it confirm support and then buy back in but with a small position, then wait another day or two to confirm bullish movement before buying some more... mitigate the risk as best as one can... but I agree very much with your analysis this is just discount prices and history repeats itself. Thank you for sharing

maybe easy to say, but you are right! The moment to buy, and spread the spent over different coins. We all benefit.

This is the largest drop since I have been watching. It is a bit scary, but these are buying opportunities!

The sec wants to regulate ico's where only accredited investors need apply. If you aren't already rich, you won't be getting rich on ico's in the US if this goes through.

This is just anotger bump in the road that we will recover from!

yah you are right bitcoin start to go up again .

The funny part about this is WE hold the price of cryptocurrency in OUR hands.

By WE I mean the small percentage of the world's wealth that is invested in crypto.

If we hold and buy more the price goes up if we sell and panic the price goes down.

Hang on people and don't run!

There is a trouble in the Force...

Thanks for the update on this! Good to know!

Good analysis. This is also my point of view. Great buying opportunity. I hope there will not be a panic sell from "non China" actors : there is no real reason for that.

Every time it dips like this, I buy a few more...when it goes back up, it's time to sell...basic fundamentals of disciplined investing. No need to focus on news and headlines of the day...let the market create the fluctuations and ride the peaks and troughs like a pro!

Bravo Cornel. Tine-o tot asa.

I would say wait a little for the dust to settle first... 😁
There is a lot of uncertainty in Bitcoins future due to the recent China events...

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True, but there has always been. If you think China is going to suddenly dictate monetary policy regarding Bitcoin and virtual currencies for the rest of the world then I think you are right, otherwise this is just a minor blip on the radar that will look like a major buying opportunity a couple months from now.

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From my perspective it looks like a major buying opportunity today already. I think your analysis and hypothesis is spot on. But I don't think it will take long before the bounce back up is there. From what I hear JPMorgan saying, I think they are filling up their position in btc as well and are buying in.

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Now for the big question... How low do you think it will go? Back to $1000?
I was saying 3k a few days ago but i'm slightly more pessimistic now... 🤔

just standing by watching the btc value go down ...i had just bought some btc when it was at 4670 if i had known this would happen id wait a bit to buy ...

Hi @jrcornel, This is great analysis on the current situation in the crypto world with respect to China's banning. I fully agree that things are going to be better after this ban.

Nive post @jrconrel good luck

Excellent. I just got me some LTC this morning! Good to hear I wasn't lost in my decision!

Be greedy when others are fearful; be fearful when others are greedy.

I think youre right! I bought more btc, ltc and some steem today.

I upvoted the post and all that and appreciate your thoughts but I just did a detailed post on why I think this is the dead cat bounce. And my guess is the bounce could occur around $2,900 or so.

There are just so many similarities to the 2013/2014 boom cycle. It's time for a reset.

I'm very new to the steemit community, part of the reason I joined is due to my curiosity about crypto currency, namely bitcoin. I'm digging your post!!! Thanks for the info! I look forward to more!

That's exactly what I was thinking. Well I hope so ...

I think you should wait for few days, its still droping, thus you wont get the lowest price

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That is what I think too. For how long do think it will keep going down?

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I am thinking that it would drop in a few day/month too, I believe it could drop below $3000, and stay between 1500 to 2500 for quite a long time before it pumps again.

I think if you invest now, you're going all the way to the bull trap. Look at "Jean-Paul Rodrigue Stages of a Bubble", then you know why. In my opinion, one should be patient for a while longer.

I'm not a vampire but I only buy when there is blood on the streets

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You catch a few falling knifes but more often than not you buy at the correct times with that strategy.

Amen!!

Now that everything is affordable again, new money should start comming in....there will be a window i believe though of a bit more pullbacks....so just keep saving and accumulating....Just make sure you are not selling at a loss....If you have made decent profit then i guess fair enough if you want to maybe sit this one out

@jrcornel Your generate up is spectacular. Mad regard for sticking as a result of many of the hardships, Many of us would've Give up A great deal before. Upvoted.

I'm enjoying the great sales on steem and some extra neo. Life is good. :)

I know!!! I am looking to buy something to add to my portfolio but I can't figure out what to buy to maximalize my BTC profits.

Surely buying Bitcoin will give me some gains, but some other stuff is down even more so it could promise even bigger gains! OmiseGo, Lisk, Stratis, TenX all look pretty damn tasty right now! Any thoughts on which one I should get?

Steem just dipped under $1. I would be buying now if there was an easy way thru a debit card transfer, etc.

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Yes that is very annoying... there are only a few places where one can buy steem... very frustrating indeed.

I agree 100 %, this is a good time to buy. After 30 september everything will start rising again especially bitcoin. Fingers crossed :)

Good to know, thank you for sharing. I hope that this is not true...
Upvoted :)

Digital coins market, such as women. changed his temper very quickly. Nothing can be expected.
The only thing I'm sure of is that today is an opportunity for everyone to become rich in the future. But I don't know when to become rich. Maybe after one year and maybe after 10 years

Ty brotha <3 respect

I TOTALLY agree with this article. It's time to start buying altcoins @jrcornel

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