Why you shouldn't be worried about these dips and why I'm buying
I woke up today to a lot of messages with "is this it? is this the crash?" and "what is happening? are there any bad news?" and so on.
Remember that not all dips require some bad news to have happened, last week's South Korean news about a potential bad were overreacted, mainstream media does that a lot where they take rumors and post articles about them as news and the investors, especially new ones see it as a reason to sell. It causes an avalanche effect where they see everything going down and they want to protect their $ value so they sell, often at a loss because they are scared that it will drop even lower.
The smart traders are the ones that buy the dips, always leave aside some extra $ or Bitcoin to get the altcoins they are going to hold longterm cheap during times like these. They know that nothing is going to stop these, even if South Korea were to actually ban trading cryptocurrencies it will be a matter of time until another country picks them up and becomes the next place where most of the trading happens as we saw with Japan when China started regulating crypto trading and ICO's more.
Here is something that could be a reason to recent downtrends in price and why I am buying more, but remember that traders often overreact and corrections come faster than expected.
As Asia is still one of the dominant trading and holding of cryptocurrencies, in about 3 weeks it's Lunar New Year over there which is sort of like their Christmas where they spend a lot of money on presents and travel. Here is a Forbes article on Lunar New Year where they project a lot of people travelling outside the country this year and they expect an approximate of over $100 billion in spending.
Here is a chart that shows the last 4 years of Bitcoin price around this time before Lunar New Year:
Be aware that each year the amount of traders and new investors has grown, many take out profits for this event while many panic sell because of the movements. It's hard to call the bottom, there is a lot of misinformation floating around lately which can cause the dips to go on for longer than expected while long-term thinkers are buying in on each of them. While many may be aware that these dips occur often it can also be a way to re-assess your investments from currencies you've only bought in to ride the recent waves of pretty much everything going up to trade those profits to something more stable. Like I said in my last post I believe this year will filter out a lot of currencies and projects from the top 100 at least and we will be seeing a lot of value float away from some to others that have a lot more going on for them and have true real world use cases.
I personally just picked up some more Steem today at 33-35k satoshi and am holding some more BTC and other alts to trade them for Steem in case it drops even further. No reason to panic, this is a good time to focus on buying those dips or if you are not a trader post a bit more actively to get that cheaper Steem. :)
What are your thoughts on this? Do you think Lunar New Year is a big reason to the recent dips in prices?