Look There, It’s A Dip!
Hey, how are you doing? Where you surprise by the sudden dip in the market not too long ago?
Personally, I am somewhat surprised. The market was doing so well that it feels like it’ll just continue to go up. But then…bam! The market crashes without warning whatsoever.
Before the crash Bitcoin (BTC) was trading at more than $52,000 but then it dropped to as low as $42,000. Fortunately, it has somehow recovered and (as of time of writing) is currently trading at the $46,000 - $47,000 price range.
Such a sudden turn of event shows how volatile and unpredictable the cryptocurrency market could be – when the whales plays, the small fishes pays.
That said if you’ve been in the industry long enough, you’ll know that such a thing wasn’t really uncommon nor was it too unexpected. It could even be said to be expected.
Like the traditional stock market, the cryptocurrency market too, could be manipulated by the whales – holders and investors with tons of coins in their wallets.
It was mainly because of these manipulative whales that day traders often suffered financial losses when the (cryptocurrency and stock) market unexpectedly crashes.
Speaking of which… since day trading can be very risky, how do we mitigate the risk of a sudden market crash?
Is Holding Long-time the Way To Go?
As previously mentioned, day trading is very risky and requires guts and balls of steel. If you’re the nervous type and your will is weak then day trading isn’t for you.
But what about holders – are they safe during the dip? It depends.
If you’re a holder that could wait for months, or even years, then yes, your investment is quite safe. But if you could only hold for several days to a few weeks then because you’re in desperate need of money then expect some loses because unless the market suddenly turned bullish again, you’ll be waiting for quite some time.
Still, to say that holding long-time is the way to go in the cryptocurrency market is a bit of a stretch. After all, day traders could still earn quite a bit of profit during the dip if they’re lucky.
Moreover, it’s no secret that people buys a lot of cryptos during the dip. Actually, it was for this reason that the price of BTC bounced to $46,000 - $47,000 range in just a few hours. So those that bought when BTC was at $42,000 actually profited from the dip.
Of course if you don’t want to risk it then holding to your coins till the price recover is still the safest bet. But that’s all up to you. It’s your money after all so you decide what to do with it. As for me personally… I’ll be holding onto my coins – possibly till December – the month where the price of cryptocurrency was known to explode.
Fun and Interesting Fact About The Dip
There’s really nothing “fun” about the dip so the title’s a bit misleading but there is indeed an interesting event connected to it.
Did you know that today is the first or the second day – depending on what part of the world you’re living – that BTC officially become a legal tender of the country of El Salvador?
Yup, BTC officially become legal tinder in El Salvador.
If you were wondering how the market could recover so fast after the massive crash then you got your answer – the country of El Salvador buys the dip – allowing the country’s stash of BTC to grow.
Okay… I was exaggerating a little. El Salvador buying BTC was not the only reason that the market recovered quickly as only 150 BTCs were added to their stash. It was actually EVEYONE taking advantage of the dip that helped revitalized the market.
But it could not be denied that El Salvador buying a lot of BTC did helped a lot – not to mention the excitement behind the news that BTC had become legal tender in the country.
Such a shame though… If the whales didn’t play dirty coupled with the above news about El Salvador; the price of BTC would have not plummeted but would have instead soared. Who knows, it might have been the impetus that could push BTC to $60,000 again.
Unfortunately, we might have missed that chance because of some whale’s greed.
Where Would The Market Go From Here?
It’s hard to predict where the price of BTC would go after this debacle. If we’re lucky; the price could go up – but if we’re unlucky the price could easily go down – honestly, it could go either way.
The whales would most likely know where BTC is heading but there’s no way that they’re going to tell us that, right?
After all, whales are not the type of people that would willingly share their profits to minnows like us. The most that we could do to protect ourselves and our investment is to be very observant of the signs, and/or to hold our coins long-term before selling them the next time the price of BTC explodes.
Well, that is all for now. Cheers!
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Disclaimer: This article was checked for plagiarism using an online plagiarism tool and was proven to be 100% original.
Image source for the lead image: PIX1861 from Pixabay
My other articles: https://read.cash/@beastion
This deep is scary at times, but I know there is hope for the last months of the year. This is good writing, wouldn't know if I would hold more though.