Bitcoin has been crashing the past 12 hours and reached close to $10,000 earlier at the time of writing this. As Bitcoin's price falls, the opportunity to buy becomes more and more attractive - Take it if you've been waiting! My limit order that I was talking about last night filled and I'm prepared to buy more if we see it dip even further.
Last night illustrated the importance of sticking with your guts. I mentioned in the video that Bitcoin bounced back right before my limit and it can be difficult to deal with that. Unfortunately, you will miss many opportunities if you don't chase price. But once in a while, events like these happen and you are treated to Bitcoin coming back down to greet your limit order as happened for me.
Some of you have been asking me if this is the bubble popping. While no one can tell you for certain (as it is nearly impossible to identify tops), I don't see this as likely from a probability standpoint. Too many people have been waiting on the sidelines for this because Bitcoin has done nothing but skyrocket up to $20k since there was the threat of the Cashening back in mid November.
Given this, I suspect substantial buyers will come in and bid Bitcoin's price up at some point. The lowest I suspect this will go is roughly $8k. If we see it break below $8k, we'll revisit the subject because at that point it is possible that the bubble might be popping, or at the very least we return to Earth in terms of expectations for price (which I wouldn't be all that opposed to honestly).
For now, I'm a buyer of Bitcoin. I am staying away from altcoins for now (with the exception of a few names that I like which were slaughtered from October to December), but will provide an update if I become bullish on them over Bitcoin.
What are your thoughts on the market? Should we buy or is this the bubble popping? Let me know in the comments below. Thank you for watching / reading.
Apart from GDAX on a desktop, are there any mobile apps you regularly use to keep on top of buying opportunities like these?
Not really - I usually just have limit orders in prepared to take advantage if the market does something while I'm not paying attention. There are plenty of good tools out there, I just tend not to touch most of them as I don't feel the need for them personally. I've always been more of a basic guy when it comes to trading and investing.
That means, that you need to leave a lot of money in the dollar wallets on the exchanges.
Everyone is recommending that you should never leave too much funds directly on the exchanges but store the in a personal wallet.
How do you handle that with fiat?
Thanks in advance man!
Keep up the good work!
blockfolio is the best that I have seen
GDAX has an OK mobile website interface. That's the only one I know. You can find android widgets for buying BTC, but at a fee I suppose.
The only thing that I do is put several differ coins on different exchanges on my blockfolio app. However, their graphs are the best in the world but I still like doing that.
I like TabTrader, supports a bunch of exchanges. It doesnt support managing SL orders though. Coinigy has an app too.
was so busy watching GDAX that I forgot to look at GBTC. It got all the way down to $1155 then bounced all the way up to $1760!
Yeah it can act almost like a leveraged play on Bitcoin at times.
The emotional state you get trading crypto is really true. I guess you could in one way call this intellectual gambling or emotional torture.
Thanks for your incite in your videos. There's a lot of people who I feel pull opinions and technical analysis from other YouTubers and making videos. I prefer to go to the people who are truly educated and have experince in finance and this market than some crazy dude who just shooting the S%*t.
Simple question... is the fact that Crypto (and especially BTC) has now become “mainstream”, a problem or an opportunity?
What I mean by that, is that with the recent popularity of the market, lots of new money has flooded in. That same money tends to get very shaken by a bear run...
I think the only way of knowing is following volume. As simple as it is volume seems to have driving prices high.
It's pressure to force the technology to become better, so in that way it is a good thing. It's a bad thing in that if this all collapses (bear market), blame will be sent everywhere and many people will be left with a bitter taste in their mouth.
I'm hoping to see these low levels for some time too.. It gives opportunity for new money to come into crypto (people entering the market generally are afraid of buying at relatively high prices).
Let this be a healthy correction so we can see Bitcoin go even higher!
It's a shame that mostly all altcoins have to tank when bitcoin tanks though. I understand it but I don't think it's fair to their projects. @cryptovestor, that's a subject worth talking about in one of your videos: the connection between the alts and BTC prices, analyzing its past behaviours during highs and lows.
Also, I know that the BTC market dominance provides information about the current market state and can give us some clues about the future, but what is your opinion on future dominance? Will BTC always be around these levels of dominance or do you expect it to lower? What would cause it to go lower than 35% or even 40%?
Thanks for the content!
So I came over here on your recommendation to asks couple of questions as you say YouTube is to busy to answer them all...
I am new to alt coins and trading and I'm gutted I didn't take your videos more serious before the dip! Lesson learnt... I
I have some alt coins on bittrex and cryptopia but don't have a Gdax account...
What I wanted to ask you was, when you say you buy in the dips how do you do this off the cuff so quickly and not miss the boat?
Can you hold USD on Gdax ready for a dip? Can you convert BTC to USD and leave it waiting for a drop or do you deposit USD direct into Gdax and then use it as you want to
I have had to put BTC into said exchanges and then got alt coins but if I cash out of the Alt coins they go back to btc... This isn't ideal if everything drops like the other day
Sorry for the probably obvious newby questions and hope you can make some sense of it
Obviously I will follow what you are saying a little closer from now on and it would be great to have some funds ready to buy in the next dip
Cheers Ben 👍
Yes you can hold USD on GDAX ready to exchange (and it is FDIC insured). You need to go through full identity verification before they let you buy or sell BTC / BCH / ETH / LTC for USD though.
Great thanks for the reply... I'm in Europe so not sure how I would go about getting USD on there I suppose the only way I will find out is to sign up and have a go
Thanks again for the reply keep up the good work
Merry Christmas
I think BTC is correcting to around 8k, jmho.
I'm looking to buy some Altcoins but I have an obstacle keeping me from getting into this market. As a newbie, I'm having a hard time getting my head around the USD-BTC-Satoshi relationship. I've gotten mix responses to this question, but from what I've researched this is what I've concluded.
If one BTC contains 100 million Satoshis, and the value of a Satoshi is based on the current value of one BTC. And all coins are based on the Satoshi value
Then is this scenario valid?
Let's say that BTC is at 10,000 USD and you buy $1,000 USD worth of BTC. You put that $1,000 on a coin and it shoots up to 100% gain ($2000 USD). But BTC drops to $5000. USD
The way I understand it is if I convert my BTC back to USD, in this scenario I will end up with my original $1,000 with no gains.
Any help is appreciated. Thanx
That scenario is incorrect. Let's say you buy 1 unit of an altcoin for 10k Satoshi. There are two ways altcoins can change in price:
The value of a Satoshi goes up. For example, let's say 10k Satoshi = $1 when you initially invest. That put Bitcoin at $10k (note that Satoshis are just a unit of Bitcoin like pennies are a unit of a dollar, meaning they will always be exactly 1/100,000,000th of a Bitcoin). Let's say Bitcoin doubles to $20k and your altcoin is still worth 10k Satoshi. Now your altcoin is worth $2. If you cash out to Bitcoin then sell Bitcoin, you'll get $2.
The number of Satoshi that your altcoin is worth increases. Let's say that your altcoin increases to 20k Satoshi, but Bitcoin stays at $10k. Your altcoin is now worth $2. If you cash out to Bitcoin then sell the Bitcoin for USD, that's what you'll get.
In reality, a combination of these two occur which affect price.
This is the video I thought of when you posted to buy this dip! : )
@cryptovestor sir
Such a useful article to me...I'm new comer to crypto world and steemit platform...I'm always try learn something with every posts...
I think that is good time for buy some coins...and hold increase prise...
I realy know and trust btc and steem can change my future life...
I'm become ur fan...and I'm always try followed ur blog everyday...bcz...I'm realy know I can learn something with ur posts about crypto...
Thanks sir..
Good luck....
Glad to have you!
What is your opinion ripple? Do you think you should buy some right now or is not worth? I mean it fell below $1
I personally expect a post-Christmas pump which may very well continue into the early part of 2018 (Jan/Feb) going back to previous highs (and beyond). With that said I expect a rather steep correction in late Feb or some time in March which might last a bit longer then the recent one (more similar to the one back in late summer / early fall or 2017) before gaining some new steam 2-3 months later in the summer of 2018 back to new highs again. I guess only time will tell.
Regarding current situation that is arising - could you make another video like yesterday about Altcoins opportunities.
Also I'd love to get to know your insight on portfolio diversification (both short term and long term)
Could you share thought on this?
Also, this might be a stupid question, but is there any more or less reliable way to minimize losses in case of crash? Stoplosses haven't been working quite well for me so far with market being so volatile.
Bubbles are notoriously difficult to spot the top. I'd say the best way to deal with this is to identify when a shift in sentiment occurs and cash out then, or make enough that you get to point where you are guaranteed to come out ahead even if the market goes against you by taking enough out that your initial investment is safe.
What's your thought on ICOs?
I don't touch them. I guess I could make exceptions in future if one really appeals to me, but I haven't bothered yet.
How about EOS?
This has been a long time coming since we didn't have a true correction down from 10k, this may be stage 1 as we test 10k and blow downward into 8k territory with a true bottom just under 7k. I think BTC can survive without such a deep correction but now is the time to clean house and fill all gaps.
It was really a big hassle to be able to buy Bitcoin. Searched for 2 hours for an exchange that wasn't overloaded or out of supply. After all managed to buy some at a good price :)
Ya I was pretty pissed that all my exchanges were down. Makes me really respect the new york stock exchange.
The fees have spicked! https://bitcoinfees.info/
HOLDERS giving up?
Margin borrowing rate on usd is 5x higher than normal! margin traders are buying.
Is this a Dip or a Correction?
Correction if you want to be technically correct.
good info.. thanks..
Thank you for your thoughts and insight on the market run.
I'm sure you're right. This is a healthy correction.
In these times of FUD and FOMO videos pop up by the dozen.
While all you need to do is step back and think things thru...
But it's easier said than done... :-/
Just go with the truth as you see it and forget everyone else (including me). Should work better for your emotions as long as you have confidence in your own opinion.
People are going absolutely nuts. Not enough research and too much herd mentality. As you said in the video, this is being a nice lesson.
@cryptovestor you have been upvoted and resteemed!
Very informative in your analyses of the crypto market as it stands. Really enjoy your videos keep up the good work!
What I really like about your take on bitcoin is the diversity that you seem to use. Knowledge from like-events from the analog markets have really helped me understand the movements in price, but this is clearly a very different space. We are still in the wild west when it really comes down to it. It's fast and easy to move money to different exchanges and between coins.
The crypto space as a whole is more of an ecosystem than any traditional market. The speed with which the "liquidity" readjusts is dynamic and fluid across the world markets.
For me this is a short-term buy opportunity with the intent of selling out before it hits 20k again, then waiting for another event like the Coinbase BCH debacle.
Thanks for the honest take on this space. I apreciate the effort and balanced take on BTC and crypto-space.
That's very kind of you - thank you. Hope you stick around.
Thanks @cryptovestor I also think this is a good market correction which is the time to buy. I think it will drop down some more and reach the support around $10,000 and stay there for a couple of days before it starts jumping up again.
Do you think it's worth converting altcoins to BTC at this point, especially the ones that are ahead of BTC, relatively speaking, even if the net USD return is negative on the respective altcoin?
I figure that since BTC is sort of like the conduit for capital in these markets, then any rebound will be felt in BTC before it's felt in the altcoins. So getting ready for the next BTC pump would increase our overall positions in the market, and allow us to take advantage of the following altcoin pump after the bitcoin rebound.
excellent opinion, but let's remember last year, when before Christmas and a new year all the crypto-currency and many shares also fell in price. I think the answer is simple, it's something that people close the positions before the end of the year and fix profits, so that they can calmly spend the family and New Year holidays. and from next year to start active trading again. Moreover, we saw what was pumping in the last time, so the correction was inevitable.
for myself from the perspective next year, I chose Ripple and Waves, they have a really cohesive and working team that develops its business.
Thanks, it was interesting
I think this is an important point. A lot of people are pulling out to collect profits for the holidays to spend on vacations, presents, family, etc. Also, they probably want some peace of mind instead of feeling obliged to check on their investments at every waking hour. I think we have at least another solid bull-run before the bear returns.
Thank you for the great content! You made your point on when to buy, but can you please explain what your criteria would be to know when to sell, and how much? I'm out of fiat currency, so even if I want to HODL and keep accumulating bitcoin, how do I take some profits?
Yeah, I'm really glad I decided to sell my Ripple last night. What a time to switch to btc
What are the chances that bitcoin dominance goes down and we see a ''flippening''? I trade with ETH pairs. Should I sell my alts and eth for bitcoin and get back into my alts and eth later? I don't like eth either. I'm all alts <3
I wish I had the money to buy some Bitcoin. My roommate and I were discussing Bitcoin the other day...We both remember when it came out and we wish we had bought some back then. It was so much cheaper than it is now lol....If we had bought some then we'd be rich. Of course, we didn't know it would take off like it has. I don't know enough about cryptocurrency or investing in general to know if it will go back up in value or not. I've seen a few people saying it might soar up to $50,000. Who knows? I guess we'll just have to wait and see.
I'm there with you, but worse I think =( I was very impulsive and invested a month's salary at the worst possible time - 10 days ago, when it was $18K and now I'm completely discouraged and panicked... don't know what to do!
That's awful. I wish I knew what to tell you. I really hope it goes back up. I hate to see anyone lose money. :(
Well, I guess as they say: You haven't really "lost" any money unless you decide to sell lower than you bought, which I don't intend to do. What do you think about @cryptovestor's latest recommendation? "Sell some if it gets to $17,500, then buy when it tanks below $10K"
Hi.
One thing I get to be worried about is whether the price will get back up though.
I am sure that Bitcoin will recover and it will lead the market short term, but at I think at some point the coin(s) with greater utility will take over. Lighting network is still too far away from production implementation, and there are few projects in the space that are way ahead in terms of practical usage (speed and fees). But, as you mentioned many times the whole crypto market is over priced for the utility it provides.
I'm a noob so sorry if these questions are bad. If I am holding a variety of alt coins would you suggest just holding? Also is buying alt coins when btc is higher and then selling when btc is low a good strategy because of the exchange rates?
I do not understand something that you said. It is a exciting time to buy BTC, that I understand and I fully agree. But in my mind is also a great time to buy altcoin! I mean... that are in low price to and I believe they will recover and we can do a nice profit on it. I'm wrong? Something that I miss or don't fully understand?
Thank you for the great content! GL!
Altcoins being at low prices on a USD level doesn't mean they are low on a Bitcoin level, which is what I was focusing on.
I really appreciate your level headed observations. Would certainly pay for your time to pick your brain on a few a things. (actually, I think there's a dapp for that now too...)
I have some friends who are clueless about BTC and block chain technology in general. I was explaining it a bit for them when we were out at a bar earlier this week and they brought up the idea of giving me a few thousand dollars of theirs to buy BTC or ETH and trade/invest into alt coins for them. I declined and suggested they learn more about it on their own, especially the past history of sharp declines in price and associated risks. After seeing this huge dip, I asked how they all felt about it now and for the most part they aren't as inclined. Interesting to see their perspectives but I'm still going to take advantage of this.
An easy way to lose friends! Smart move on the decline!
Firstly, @Cryptovestor I must applaud your cool demeanor and thoughtful approach to the crypto market. In a world of ‘hype men’ you are a voice of calm reason. I’m a short time YouTube viewer and first time video commenter and wanted to use Steemit to pick your brain.
Now, although I must admit I fell victim to some crash/emotional selling of some LTC, I’ve turned my profits and those sales towards building my BTC shares.
Do you purchase in increments during this correction? What influences your buy prices when you set them?
What's your opinion on Lightning Bitcoin (LBTC), Super Bitcoin (SBTC), B2X and these sorts of forks that seem to sprout from Bitcoin this month and in January. Do you transfer your Bitcoins to your private wallet to be able to cash them out later (while not being able to sell them on the exchange during this time), or do you not bother with these at all?
Great video and article. I've just posted one myself here doing a bit of technical analysis (Bitcoin Crash and Price Target). What I did not cover are the fundamentals. Which, IMHO, suck. Low transaction fees? Is $15 fee on a $20 transaction favorable? It's anything but safe. The lack of security is appalling. And it's so user unfriendly that 90% of the population will never be able to use it. So, if Bitcoin is neither reliable nor efficient, what is it good for?
Always on time! Always right! Good job, bud. I am learning a lot from you.
Great material, thank you very much for doing what you do!
What's your opinion on TOKIA https://www.tokia.io and do you see it having much potential vs the existing btc debit cards https://bitcoinexchangeguide.com/top-bitcoin-debit-cards/
It seems at the moment the market is chasing:
Is there any coin in the market at the moment IN IT'S CURRENT FORM that can handle global adoption while maintaining these three factors?
Curious to know your thoughts... If there isn't a coin currently capable, which coins do you believe to be most promising in achieving these three things?
NavCoin, Raiblocks..
what about the bitcoin cash factor?
being technologically superior?
Can you comment on what the pandemonium at the futures markets must have been like through all this? It's their first Bitcoin correction after jumping on a very bullish trend, and it happened rather quickly!
The Bitcoin dominance decreased back to 43.6%. I think the tendency towards alt-cons is going to continue as more people realize that there are coins that costs pennies to transact compare to $30+ Bitcoin fees.
The problem with that logic is no one is using altcoins for transactions in most cases and that for a lot of them, they wouldn't scale all that well too if they had to deal with Bitcoin's level of transactions. Not saying that's true for all of them obviously, but a number of them. Even if they could, there are other issues that come up when dealing with Bitcoin's scale (which is still fairly small on an absolute basis).
idea for podcast: I am curious about the ownership structure of companies doing ico's. If owning tokens isn't the same as owning stock/equity in the company, then who owns the company? Do most of these companies still have the right to issue stock down the road? Maybe I should read their white paper if its' in there...
I think you are right, not sure about all out tank, I actually think there will be more solid resistance for the drops to come, making them much smaller dips. Here is a post of mine I think you would enjoy...
https://steemit.com/bitcoin/@cryptkeeper17/the-bloodless-american-fiscal-revolution
Hello and thank you for your videos/knowledge.
I have a general question.
When the market is going down, I can sell my BTC/ETH to USD (and buy them back later at lower price) but I can’t do it for the rest of my coins/tokens (without converting them to BTC/ETH first).
Instead of converting them to BTC and then sell for USD, is there a safe-haven coin or strategy that can be used?
I was thinking to convert to USDT (Tether) as its price is very stable vs. USD or maybe an exchange coin (like Binance BNB).
Your thoughts?
I actually follow your YouTube channel and have learned a lot from them especially about market trading. It really helps that you're not overly optimistic with your outlooks in videos like these as I find with some others. May not always be the most hopeful, but your perspective in this video does provide for a more practical take on and application of casual trading by a relative layman like myself. Thank you for the tips and know that I definitely bought on the dip today