Once again today BTC is dumping hard with no idea how much more it will fall. BTC is losing it's value against USD from $35k to which is now reached around $32k each Bitcoin. The $33k support has been broken, heading towards $30k but before that $32k and $31k are some strong supports we may see a bounce back from these levels.
As you can see in the chart above, we have two scenarios ahead:
The first scenario is the Elliot waves and the process according to the waves.
The second scenario is when the price reaches the bottom of the triangle and exits the bottom of the triangle.
The further prediction of the trend is difficult to calculate, because anything or any news can manipulate the further trend, either upward or downward trend in crypto market. According to crypto chart analysts, the Chinese FUDs are responsible for this dump of Bitcoin. The spread of FUDs in the crypto market resulted in a loss of BTC value. Even the alt coins are suffering from the BTC's bearish trend. But What is FUDs and Why they are spreading?
What is FUD?
An acronym that stands for “Fear, Uncertainty and Doubt.” It is a strategy to influence perception of certain cryptocurrencies or the cryptocurrency market in general by spreading negative, misleading or false information. Since past two months, there are many news has been revolving around about banning on crypto mining in China, legal actions against crypto miners and crackdown against miner to stop energy consumption which is polluting the air in our environment. Initially the FUDs begins from China, India, USA and later on Iran also announced ban on crypto mining to prevent energy consumption. But why suddenly these FUDs came out from the crypto giant holder countries, Why they are spreading FUDs?
Why they are Spreading FUDs?
The purpose of spreading FUDs is to convince the crypto holders to sell their holdings mainly Bitcoins which benefits crypto whales. The FUDs are spread through the news, people are likely to panic sell because of fear of losing value, ban on crypto trading inside the border and to recover their invested amount, which results into creating bearish trend in the market and loss in the BTC's value. And this is how Bitcoins become cheap. Now who take advantage of these FUDs and panic sell?
Crypto Whales
Crypto Whales are individuals who hold large amounts of coins of a certain cryptocurrency. This makes them powerful enough to manipulate the valuation of the said cryptocurrency and this results in price volatility. In other words, the crypto whales helps the government to spread FUDs. When the crypto market enter in a bearish trend because of FUDs and panic sells, these crypto whales waits until the Bitcoin get cheaper and buy it in a bulk. These FUDs helps the crypto whales in buying cheaper Bitcoins. This sounds a very tricky way to get Bitcoin in a cheap price but this approach works for them.
Just HODL It...
Every year the same FUDs revolve around the globe but the fact is it's impossible to ban Bitcoin. Bitcoin is now becoming legal in many parts of the world, even few countries are planning to legalize it, Bitcoin is a first digital currency which is rare as gold with a limited supply. Bitcoin is not just a currency, it's powered by a blockchain technology, which means it has more advantages than a disadvantage on our economy. So here is no chance of banning of cryptocurrency for trading or mining in a mean time or in a future as well. Don't let them win this by panic selling your Bitcoins.
Conclusion
These FUDs are spread to distract holders from holding Bitcoins. These FUDs are opportunity for crypto whales to get cheaper Bitcoins. Don't ever get distracted by such news and FUDs, ups and downs are part of the trading but downs are always temporary. Never panic sell your Bitcoins, soon it will get back to $60k, once pump and dump game ends. Even these FUDs are also opportunity for us to fill our bags with more cheap Bitcoins, and in the future Bitcoin might not look back to the position of $32k, it's heading towards more success. HODL till death.
ssshhh! The Secret...
Since a long time I have been studying cryptocurrency as a developer, But few months ago I started my first investment in a cryptocurrency. In the beginning, as a newbie trader I panic sold my holdings during a huge dip when BTC reached at $32K. Although it was my first and last mistake as a trader and I have learnt a lot of things such as stress control, risk management and ability to make decisions. Today, I am glad I have learnt from my past mistake and I have improved myself within less time. My decisions are based on technical analysis, and crypto news, and I hope I will never repeat my past mistake again.
disclaimer: I am not a financial advisor. Kindly do your own research before making any decision. I am not responsible for any financial loss. You are solely independent to make your decisions. I do my own research before investment and then share my experience so others might get benefit from my little knowledge. The article is completely written by myself. No part of the article is copied from any source or website.
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