Are we in a bear market now? Bitcoin slides below $4K, - Market Cap: $132,866,181,718 - What next?
What goes up, must come down, I suppose.
And with FUD at a recent high (thanks to China and JP Morgan) - many investors are betting the price is in downtrend, by selling.
A classic bear move, hoping to rebuy at lower prices and earning capitalization on their original investment. It is imperitive as an investor to "consistenly take profits" - as they may not be there tomorrow.
What about the rest of the market? There's a lot of red. ARK has seen a strong few days and is now testing pullback, NEO has been going sideways after a dead cat bounce last week. Ethereum, DASH, BCH seem to be following BTC's lead. Even OMG ricocheted off $13 back down to near single digits. And again Litecoin seems to have stabilized nicely in its new highs.
Also, friendly reminder. Keep an eye on the price of STEEM. Last bear trend we got some great discounts. And prices have shifted a bit since then. LTC could make for a good trade here.
What goes down, must come up?
We do know that the market for cryptocurrency has ballooned, and some fear of a "paradigm shift" crash with prices plummeting well over 50%. And while I do believe that some of this is possible, this general market growth implies buyer growth, day by day. And we saw sharp spikes in price from $1900, possibly a new bottom.
In recent technical analysis, I found $3,900 - $4,000 to be the area of resistance, and in the graphs, showed this being the third attempt for bears to break lower. So far, that was the case, and we are now testing new areas of resistance as well as closely monitoring volume levels in this territory.
https://www.tradingview.com/x/YFiZLs0X/
Good Crypto Bad Crypto
We see governments, celebrities, tech businesses, conglomerates - all frenzy and foam over Bitcoin and the likes of Ethereum. We've seen explosive job growth in blockchain development. Billions of dollars pouring into a seemingly future-ish and matrix-style epiphany glaze over the general public's eyes.
We've seen hacks. PR attacks. Geopolitical tensions at an recent high. Fear, uncertainty, doubt. Like will a large corporation like Google, or Apple - Amazon, PayPal even, remove a general need for digital currencies? Is Bitcoin actually digital gold? Is the blockchain idealistic communism???
We don't know. And we should/will.
I'm hoping to find out sooner or later. I see the value, and yes the need. I think it opens up a new world of possibility for a capitalistic ideology, and can appeal to the entire political spectrum.
Let me know what you think in the comments! Is crypto here to stay? Is this the calm before the storm? Or did we already witness the pride before the fall at $5K? Did I go off on a completely irrelevant tangent? Yes. This FUD is frustrating, unnecessary, and dumb. But what do I know?
Although the price drop is likely ultimately coming from the growing number of voices that seem to indicate the Chinese ban is real, Jamie Dimon's comments certainly add more fuel to the fire.
Much of the crypto explosion this summer began shortly after Japan legalized bitcoin. This is not incidental. The wave of new comers into the space are likely not composed of hardcore libertarians or anarchists, but rather people for whom government sanction, and their ability to legitimize an industry such as this one, weigh a great deal. The move by China indicates that at root, governments will have a tendency to feel threatened by cryptocurrency -- a point of consideration long recognize by seasoned bitconers -- which, at the very least, represents a serious roadblock for adoption. Dimon's comments suggest this is not a problem unique to China, but may in fact be widespread (particularly from more powerful countries like China and the US).
In my opinion, Bitcoin alone was not enough of a threat to these countries' governments. If bitcoin reached its current marketcap alone, without the corresponding altcoin run up, we would not have seen this kind of hostile action from China. It was the rise of ICOs that scared them into action.
Why? Because nothing in crypto threatens banking the way ICOs do. The common refrain in Bitcoin is, "Be your own bank," and the usual meaning of this statement is that one can now secure and control their own digital money without the need for a bank. However, the true meaning of this is that crypto all but eliminates the need for banks. But this didn't actually become true until the rise of ICOs.
The most important function of banking, and the main source of their profits, comes from lending. Prior to the ICO, crypto existed as money, it existed as digital cash, but it didn't offer a way to reproduce or compete with banks' primary utility, lending. But with the ICO, suddenly individuals and company's had the ability to raise capital, issue their own form of credit, and completely bypass lenders. This power is so great, it threatened the very soul of banking.
Many ICO skeptics within the Bitcoin community have actually desired to see this kind of crackdown. They believed ICO were an aberration and distraction from the real value proposition of crypto, which was the base currency (i.e., bitcoin). But what they failed to understand is that intrinsic to the nature of such a base currency lies the power of credit creation, even if that power lay dormant for several years. Because this power cannot be separated from cryptocurrency's themselves, because one does not go without the other, governments will have no choice -- if they intend to defend the banking industry -- to attack cryptocurrency in its entirety.
Thanks for sharing your thoughts about the matter. I'm fairly new to cryptocurrencies and I really have the idea it is exploding.. in everyone's face by now. The amount of coins is growing by the day claiming to be the next great thing that will 'DISRUPT' whatever market it is for.. yes yes.. great! i dont believe it. Not so fast!
The 'normal' people who don't follow tech news so much have heared about the great stories about bitcoins and such but most of them(me included) has never even been able to pruchase anything with a bitcoin. It isn't in shops, barely anything online and right now all these currencies are acting as a 'goldrush' for people to make a quick buck.. its not investing at this point, its gambling.
The value of these coins are so unstable they arent suitable to be a mainstream payment method, because at the current rate if i was to buy a bread with a bitcoin 1sec it costs the equivalent of $3 dollar the next $4,6 and then back to $1 .. :/
So I think the hype right now will lift the markets back to where they where a few weeks ago.. but I'm not as confident as others that all these coins will grow up to be worth thousands.. that ship has sailed i think :// i hope im wrong!
BTC is a financial revolution and it cannot be stopped. When the US dollar and stock markets collapse this fall, the price of BTC will skyrocket. I expect a $9k Bitcoin price tag by the end of December. The price correction we are seeing now is healthy for the crypto markets. I'm not worried at all.
agreed @teklordz - I hope your projections are accurate! Maybe sooner?
There is so much craziness going on right now its insane... all this talk and FUD is driving prices in every direction possible lol... I mean its not bad if you're aware of what is happening but it could be dangerous to a market.
Heres to a little stability to find out the true meaning of where the price is and from there who knows :D
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Seriously! It's pretty annoying when there is also a lot of positive news available. All I know is buy low sell high! haha :)
I'm hoping Steem dips below Steem Dollar. Have a bunch of earned Steem Dollar I'd like to covert and ride the Steem price back up.
that sounds like a great strategy to me @chieppa1 - it's already dipped quite a bit!
It will pass eventually, each time bitcoin crashes t comes back stronger than before. We may not be done correcting yet I think. There will eventually be another new all the time. It's not a matter of if but when.
Is at the bottom level for some time. Bitcoin is going down. Never up Thank you for sharing
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