CRYPTO ALERT : BITCOIN IN FREE FALL ?!
I'm focusing my post on Bitcoin this time. It is the basis of all the cryptocurrencies, never forget it... We thought it would act as a locomotive, we all thought it would keep on its crazy run at the beginning of this month, we all truly believed, even during a few minutes, that it would skyrocket, but it didn't, you have to stay realistic : something can't rise up that fast without having a point where the run calms down, stagnates, and eventually falls a few steps back, before regaining growth again. That's the typical scheme of Bitcoin : free rise, a few steps back, stagnation...over and over. If you understand the scheme of a coin, its graphical pattern, you will get it fully and be able to make predictions on how to buy it and how to sell it, and if it is good holding it for a long time. From those patterns, I deduced the fact I can trust both Bitcoin and Ethereum for long-term without worrying too much, provided I buy them at the lowest possible point, that's always a bonus. But the thing is, most altcoins have patterns that are really complicated to read, that's why we don't understand them fully for now, and that's why studying the white papers is so important in order to know which work is more trustful for a long-term investment, if you wanna maximize what you get from your little gamble you take on a particular altcoin (I will make a post focused on them).
That shows how everything can quickly change in an environment filled with uncertainty. Who would have guessed that kind of evolution ? It was running towards 20 000 according to some people. Learn not to overreact I guess. And my advice is keep waiting, before it can even go down lower and lower. At the same time, we can notice market capitalization is now standing at about 566 billion $, about 30 billion $ less than yesterday : there are crazy movements happening right now, crazy withdrawing linked with the end of the year probably.
At the same time, Ethereum is keeping relatively stable just over 720$. Ripple pumped a lot of money lately, so I think this is the main reason Bitcoin dropped so much. You can clearly see it in the video : Ripple performing well is ALWAYS correlated directly with Bitcoin falling down. Not enough to make Ripple the "new Bitcoin", but now it gives some material to seriously think about. All of those who were into FOMO (Fear Of Missing Out) when Bitcoin was on a crazy rise now regret it, because they just bought it too high. As it is going, you should seriously consider buying Bitcoin soon, personally, I am setting up a limit order (which is a useful tool in order to act with discipline in this market, without being left hesitating thinking "should I buy now or later") : if it does get below 9 000$, I'm gonna buy it, because we all know it has the potential to grow up again, chances are it will, certainly.
The lessons we have to learn from this particular event are the fact you can soon plan to buy both Bitcoin and Ethereum at a relatively low rate. I wouldn't be surprised if Ethereum falls by the beginning of January, you know, beginning of the year is always like that, I try to be objective and look at the facts that happen every single year in the same period : people still digesting their Christmas and New years celebrations, their mental strength falling down because of the end of it. You have to think in a way that you can view the masses' movement ; that's the logic that will make you master the big money movements too. Intuitively, I thought about that at the beginning of the month, when I was planning to buy and hold Ethereum and Bitcoin (glad I didn't manage to do until now, thanks to the sites which didn't let me get faster to that process, I will make a full accurate post explaining that too). I thought it was all gonna fall just before Christmas, then just after New Years, because of either withdrawal or people simply freaking out (I talked about it in my first cryptocurrency article : freaking out mostly because of some "2000-year-reminiscent-fear").
This fall should keep on for a couple of weeks I believe. So if you think you have the patience to get Bitcoin at an even lower price than that, just wait for New Years to come over and to pass by. Investment is all about that anyway : day trading makes you mad, it is no real possibility to make profit, especially with the sites that we have right now, which don't allow to trade or withdraw fast. So you have to believe in the long-term predictions your instinct gives you. Take a closer look at that youtube video, he sums it up well and gives details about the reasons that could convince you even more that Bitcoin is gonna keep falling down, with graphical pattern explanation, for those who enjoy the maths aspect of it.
To sum it up : Bitcoin and Ethereum, the 2 leading cryptocurrencies in 2017, are stagnating and even falling (especially Bitcoin). So this is mainly good news, given the fact they're both keys to accessing the altcoins market, that is to say, all the coins that have even more room to grow up and explode to the moon. So let's wait for a couple of days, maybe a week, put a limit order, and get back on buying them ! You have to think from the holders' point of view, the ones who bought it too high : they're gonna freak out and keep on selling or withdrawing, which will make the value fall and fall and fall...more and more. The classic, well-known domino effect that happens so often inside this world when things go bad (when things go well too, but in the other way round). That's why you should always be careful and not overreact, and always try to have a head start on what's happening. And don't forget : there is no final decision in this world (except for long-term investments you rely on), all the decisions you take in order to buy or sell are little readjustments to what happened the week before. But there is always something to learn from a fall or a burst. You can quite always link it with other cryptocurrencies' evolution, what we managed to do here. And you can often manage to extract a prediction from it, hopefully a wise one.