If you blinked you probably missed it.
Actually, even if you didn't blink and you were logged in to Coinbase and staring at your dashboad you probably missed it as well...
As Coinbase conveniently (or very inconveniently if you have money on there) went down for several long minutes while Bitcoin was mulling around those lofty digits.
However, when the chart came back up, at least you can see where it had been:
It's not really showing up here but I saw it over $19k per coin before Coinbase decided to give me the blue screen of death.
What is going on?
Good ol fashion fear of missing out.
Better known as FOMO in trading circles.
Tons of demand coming in all at once and not much supply.
Hundreds of thousand of new accounts created on Coinbase every day and new exchanges coming online in South Korea likely some of the main drivers.
Plus I have some suspicions that there is major manipulation going on between some exchanges and large holders intent on manipulating prices sky ward, but I have no way of proving this.
How high will it go?
Who the heck knows!
I originally thought it might stop around $10k and have a significant dip there. It didn't.
Then I thought ok maybe around $12k. It didn't.
Now I really have no idea.
The next psychological level would be $20k, which it got pretty close to on Coinbase, but no where near that level on most other popular exchanges.
All I can say for sure is that this is irrational exuberance folks. Almost every technical indicator is screaming overbought.
What's more, this type of price action is looking like a "sell the news" type of event when Futures go live on Sunday evening.
I would not be surprised if we see a short term top in prices sometime between now and Sunday evening.
However, if no governments do anything "stupid" I think price will ultimately still go higher than even what we are seeing here in the medium term.
Good luck and don't be afraid to take some profits.
Also make sure you never base any buy or sell decisions solely what you read here as these are just my personal opinions and like you, I have no crystal ball. :)
Stay informed my friends.
Image Sources:
https://integrityplanner.wordpress.com/2012/04/03/more-prediction-follies/
Follow me: @jrcornel
Was it an error?
Hm... I don't think so XD. Just a case of sudden demand spikes, and then the resulting correction.
We are in nuts territory and is fun...but we must always be wise and careful.You are right is time to profit. Sane happen to me I thought 10K was correction time, the 12K 13K...and now 20K ....that was reaaaaally nuts ...is just a new wild ride now...lets be wise and profit
Hello @jrcornel!
The concept of taking profits and related timing issues have been preoccupying me, so I was interested in your remark on this point. When he was alive, my wife's dad used to insist that if you are lucky enough to show a big profit in a position you should take your cash at risk off the table. That still looks like good advice.
However, I am increasingly asking myself "okay now that I am back into cash with the part that I had risked", what am I going to do with it? The problem is that in the days when he was alive the bank looked like a wonderful place to park various sums until you got around to deciding to do what to do with them. But these days? Oh well, that's another story!
The long and short of it is that I'm already having problems with the restrictions being placed on access to bank funds, so adding to them no longer strikes me as being a great idea.
I feel that "taking profits" continues to mean either going into cash for a certain amount of time or promptly moving the money into another attractive location. Okay, so let's say that it's the latter. My problem is that I don't have another attractive place at this point, and I always thought that I was just going to put my funds into bitcoin and forget them (treat those funds as being part of my virtually locked away money in the bank, and which I am ready to lose 100%).
Some serious discussion on this concept of "taking profits" could be helpful.
This has to be a decision every investor makes for themselves. If you believe bitcoin will be higher 2 years from now, 5 years from now, whenever you plan on "needing" the money, the best thing to do it just hold it. If you are trading around a core position that is something different entirely. I usually like to trade around a core position, meaning that I like to add when things look bleak, and sell some when things are over bought.
I believe you are correct, you could take the profits and put them into poor old Silver... but then you take a tax hit.
Or you could roll profits into alt coins... for potential outpacing of Bitcoin... but why.
You question what to put it in is stark, as there is really nothing better to hold... I purchased out of my C-Corp, so I couldtheorhetically take profits and offset the taxes for growth... but I can guarentee it is not growth like this.
So we all face this dilemma, but it could be worse I suppose, even dropping to 10k. My Plan is to live the HODL expression so nicely coined for such a question.
Thanks @kyusho and @jrcornel for your helpful comments. Since I never got into BTC as a trader, and do not now see an attractive place to relocate the cash that I had put at risk should I now take it off the table, my inclination is to just close my eyes and forget about what's going on with the price. After all, I had made my peace with losing 100% of this position if that should come to pass.
I like @jrcornel's notion of trading around a core position; but I have to say that if I was doing that in BTC these days I would probably have a heart attack around the issue as to whether I had made the right guess on timing each time I did something. I have bad memories about being always wrong on timing (or so it seemed) when I was an active trader of stock options.
The bottom line is that I suspect that on a big price crash, say back to the area of 9K, I would probably try to do what I did a few days ago and it was near 9K, and that is take some new money and add to my position.
It will interest you guys to know that at the time when I tried buying more a few days ago when it was near 9K I went over to an ATM, and there was a poignant message on the machine saying that the owner had closed down the service because the fees were too high the transaction backlog had become worrisome. If that's how he felt a few days ago, I imagine he must be happy today that he got out of the business!
We are certainly going to have to find another coin if we still want to be able to “send 5 cents to Africa”, which was the mantra about one of bitcoin’s key benefits years ago!
This is something every investor struggles with, I've been struggling with it for the past few months in crypto, maybe you can learn something from my experience...
Every time I sell and take profit off the table, I "miss out" on the run-up in price that happens a few days/weeks later. What I realized is that you just can't think like that. You have to, in my opinion, take a portion of your profits off the table and diversify into other assets if you're uncomfortable with the risk of only owning Bitcoin.
How much profit to take and where to place these profits are the next 2 questions you'll need to answer. If you're looking for high-risk, high-growth then I would recommend looking into some alt-coins or more Bitcoin. If you're looking for low-risk, medium-growth, income-producing assets, I recommend checking out a strategy called Dividend Growth Investing. (Disclaimer: This is not financial advice, do your own research please!)
My thoughts, what ever you put in, make sure you take that out and the rest is house money. Every investment you do that and keep stacking on that. Yet you take back your original principal. The rise in crypto is continue to take form but we all do not know when this will crash. At the very least if you take out what you started with you will really not lose anything. To take more than what you put in is definitely a plus but if you look long term I think best is to invest as much as you can that you are willing to lose. Just my thoughts.
Your view is exactly the position my step-father used to take, @mawit07. It's clearly helpful if you are sitting on nothing but flat or rising price trends (and you are long) among your various positions. However, if you have some losers on your hands, I think the situation is more complex as regards what to do.
This is just the beginning...
Don't forget futures are available on Sunday and then again on the 18th, which could either drive the price up to $50k or down to $10k.
The upside is still great. Any economist or analyst saying it's overbought (which is everyone) is basing that on conventional theory. Applying conventional theory to an unconventional and revolutionary concept simply doesn't work.
Look for "corrections" but it's going higher long term.
Check out my latest post on why Bitcoin isn't a Bubble, unlike the other "bubbles" of the past:
https://steemit.com/bitcoin/@bitbybit/3-reasons-why-bitcoin-is-not-a-bubble
Very true. I personally haven't seen anything like this in my short time trading. BTC is defying all conventions of theory, but I believe it's only a matter of time before we see some real downtrends. However, in the meantime, all the indicators seem to be pointing up!
I'm just enjoying the ride now, this is insane! Nobody wants to miss out in case it moons yet again, but if you're saying that the technical indicators are pointing to a dip in the near future, I believe that.
Technical Bitcoin Analysis is below.. LOL..
The Ants Go Marching One By One...
https://steemit.com/bitcoin/@pawsdog/7whdbh-12-6-2017-the-market-view-and-trading-outlook
https://steemit.com/steemit/@pawsdog/steemit-quest-for-one-million-time-required-to-build-a-usd1-000-000-00-steemit-account
Wow can't believe it has almost hit 20k
I will eat my shorts if it won't hit 20k USD before the week ends...
Bon Apetit!
Merci beaucoup ;)
Market is really showing a super moving Bitcoin as you had said its next physiological level is 20k what would you think actually where does it stop.
Up we keep going... I can smell 24k before January... If it continues like that.
Good post, and interesting insight. Bitcoin has served as a textbook case of a bubble, and now we just get to wait for the pop. Unfortunately I'm not currently long on BTC thought, I missed the boat on the big rise :( Mostly waiting for a sell signal and planning to invest in altcoins. What would you look for in the charts as a sign of substantial resistance and even a reversal?
Up is good.
I saw on Coinbase earlier $18,464.00 USD... but dropped to $15,400.00 now at $17,040.00. What will be funny is the CME come on line and just as fast as that $3,000.00 swing, be out of business.
So let the show begin!
Canada passed $24,000 .... whoosh!
Yep, several exchanges went down during that spike, 3k round trip move in about 10 min.
Yeah I saw it spiked up and GDAX went down. These price actions are out of this world. Everyone is trying to contact me.
These prices have even blown John McAfee's mind and he was ready to chow down on his own dick his conviction for this stuff is so high.
It is blowing my mind and it is a very emotional time for a lot of us no matter if the person got rich or if the person feels like the missed out or partially missed out.
There is big gaps even between exchanges. I wonder if there will ever be a centralized exchange similar to NYSE or NASDAQ. That would be sick. One big exchange for crypto trading.
Smaller exchanges will go offline one by one when they can't keep up with expectations from users... Most live because bigger exchanges don't list new coins easily, but new coins won't be new for long.
Even bigger exchanges go offline because the volume of trade will overload them and they have to shutdown deposits and withdrawals to cool down the markets.
HODL!
My thoughts too...
I did put my Bitcoins in BTC Vault on Coinbase so I wouldn't be tempted to sell them when the price suddenly goes up... I think it will go much higher in next few days. There will be good dives too that make it possible for lucky people to double their coins. I moved most of my coins from HitBTC to Bittrex few days ago because something told me the markets are a lot more volatile on Bittrex than on HitBTC. I don't like the minimum trade limits on Bittrex, but luckily I moved enough coins that the minimum limit wasn't an issue. I try to keep the total value of coins below the threshold where local tax authority requires additional reporting, which is currently 900 EUR measured annually.
I did, i did! :p
Lol yeah its went bizerk
wow bitcoin is my best earning site...especially thanks for discuss about bitcoin..can i resteemit your blog now??@JRCORNEL
Actually I don't understand what to do in this condition well I had some Ether and I don't know should I convert it to Bitcoin or stay in it
thanks information
Rule # 1
Never invest what you are not prepared to lose.
Right
Am not surprised cos the investors are seeing the future currency growth. Nice post, keep the steem burning
Excellent, balanced advice @jcornel We are in uncharted territory now and anything can and will happen. I'll bet its jumped even as I write this! :) Upvoted.
source
Bitcoin is my favourite site. thanks for your posting
Agree, we need to see a pullback very soon. It happens frequently. I am waiting to buy again on dips. If they come:).
Good info as always. I believe caution is the word of the day. Sunday at midnight could be a pump-kin!
19k? This is how they are doing it in Korea:))
Thanks for the good laugh!
Congratulations @jrcornel! You have completed some achievement on Steemit and have been rewarded with new badge(s) :
Click on any badge to view your own Board of Honor on SteemitBoard.
For more information about SteemitBoard, click here
If you no longer want to receive notifications, reply to this comment with the word
STOPIf I was trading a stock I would have taken profits a long time ago on BTC but this isn't a stock. I have no idea how to determine what's going to happen and when. The people buying are a combination of institutional investors trying to get in before the launch of the futures markets and newbs with the bad FOMO itch (I'm assuming). Hard to tell when that's going to stop. Even if there's a sell off on the 11th, I don't think the exuberance is going to fade in the newb camp. We've got so much interest that bitcoin-related searches are the top two most-searched subjects on Google right now! What that means is that we've got probably hundreds of millions of people buzzing about Bitcoin right now and trying desperately to get in. Some people I know have been trying to get a Coinbase account since yesterday and everything's so slow on there they still haven't completed the sign up process yet. I almost can't believe what I'm seeing with this stuff, but it doesn't show signs of slowing down. If anything it looks to be accelerating.
I saw the price hit 19 thousand on gdax. The buy orders were coming in so fast it was shocking.
coinbase is the most downloaded iPhone app, ahead of Facebook and YouTube. Pretty amazing under any circumstances, but especially when you consider that the service hasn't even been working for significant chunks of the week