Bitcoin has been in a price slump lately, down to $33,773 USD, at time of writing. This is a far drop from the momentum that started earlier this year that had bulls eyeing $70-75,000. It is important to remember that markets never move vertically, not for very long, anyway, a hard lesson in the crypto space that seemed to be defied at times.
Inherently, as a new asset class, cryptocurrencies have been highly volatile from the beginning, giving investors opportunity for huge rewards and the same amount of risk.
Elon Musk seems to move the price of Bitcoin every time he sends a tweet and China.. well, we knew not to trust them anyway. (Joking. I am American. I have learned not to trust ANYONE.)
The FEDs
One of the main attributes of Bitcoin is decentralization, not being controlled by a central agency. In any market, however, there will be participants and institutions with more exposure and price manipulations, especially in an unregulated market. Because of this and the high amount of volatility, or price fluctuation, many countries are beginning to legislate regulations on cryptocurrencies.
Regulation does have its benefits that can easily be noted by anyone that ever traded penny stocks. The problem I have with China is, a government pretending to care about its constituents. I am being a little dramatic. China did not impose restrictions on individuals holding crytocurrencies but financial institutions are banned from offering any crypto-related services.
Now, a government couldn’t have a hidden agenda, right? Well, maybe you have heard that China is developing its own digital currency, the digital Yaun.
The moves were not Beijing’s first moves against digital currency. In 2017, China shut down its local cryptocurrency exchanges, smothering a speculative market that had accounted for 90% of global bitcoin trading..
https://www.cnbc.com/2021/05/18/china-bans-financial-payment-institutions-from-cryptocurrency-business.html
Nixon
Another fear that some have is that Bitcoin and other altcoins are not backed by any real value. This is very true but can also be said for every fiat currency in existence.
I’m holding for now because I do not have a huge amount invested and hardly spent a dime for the portion I do own (and I do not “hodl” btw, because I passed English Comp by the skin of my teeth and I am very proud of that).
So, the case for Bitcoin and other cryptocurrencies is yet to be made along with, the rest of the economics around the globe. Keep this site bookmarked or, better yet, click “allow notifications” to stay informed on financial hacks and resources. A dollar-cost averaging article should be completed soon which, is what I would advise anyone looking into “buying the dip.”
One of the best ways to get exposure to cryptocurrencies is Coinbase. More crypto resources can be found here but for the sake of advertisements, I’d like to share two more apps that I am currently enjoying, listed at the end of this article.
Another topic I will be writing more about is, Wychoff methodology. The reason I mention him here is because of a recently watched Youtube video. Like everything else I do not share as soon as I watch or read, I have lost the link in my endless Youtube history. Seriously, Google may need some more servers. Anyway, the guy in the video overlaid a Wychoff drawing that showed accumulation transitioning to distribution.
Important to note that after an accumulation stage, there can still be a continuation of accumulation. So, basically this guy was saying to be careful because Bitcoin’s current price fit the model perfectly, signaling to him that the price was going into sell-off mode.
Wychoff’s methods seems to be increasing in popularity lately. Of course, this could just be “the” algorithm showing me pieces of some program I should be following. At any rate, I think you’ll find it interesting and will be continuing my research.
That’s all for now. Check out the links below.
Brave has a chrome-based privacy focused browser that blocks tracking ads and rewards users that opt-in to their non-intrusive ads with BAT (basic attention token). Don’t want to use that free BAT? I am a verified content creator so, just visit my website on the Brave browser and send me a tip!
AMBER is a new app that offers up to 16% initial interest on Bitcoin, ETH, and more. I actually lost $10 USD on my first trial run because I did not read the instructions correctly (nice way of saying Amber was a dick about it). The way their payment system is structured, there is a minimum amount that has to be transferred. At the time, the minimum for Bitcoin was 0.0005 which, was around $30 when it was trading in the $55,000 price range. So, be sure to read carefully in case that amount has changed. I am guessing that customer service is a chatbot but whatever it is, it has a quick and precise response any time of day.
