Believe it or not, lol – I didn’t get stuck in this crash :D. (At least not yet.) I was stuck on an exchange for a few days, which prevented me from trading (I’ll write about that later.) When I finally got out of the exchange, the crash started happening – which means I had BTC to spend on all the crashing alts :D.
Well, I was worried about doing some daytrading during the crash, because maybe it would be stupid to sell at these low prices? So I did some research to figure out the source of bitcoin drastically dropping to $10,700 (and maybe less). Here’s what I’ve found so far:
1. Daily FUD This Week (and Their Current Status)
It may have started with the S. Korea ban scare. On January 14, 2018 – the start of this week, S. Korea announced that it was coming up with legislation to ban cryptocurrency trading and related trading exchanges. They also are working on enacting legislation that makes it illegal for crypto traders to trade on S. Korean exchanges without providing required governmental documentation and identification.
FUD dispelled: S. Korea has now stated that they’re not planning on banning crypto trading.
But the FUD has already seeped in too far.
Next, today China announced they’re planning on preventing Chinese nationals from trading on non-Chinese cryptocurrency exchanges. It may be a ploy by the banks and government to keep China’s economy circulating only within the country while all other countries pour money into their exchanges – the result is a humongous profit for China.
But the FUD has dealt a blow to the crypto world, further pummeling bitcoin as many people started selling their coins to avoid being caught in the potentially devastating chaos. Everyone still remembers November – and they’d rather sell now than deal with all that darkness during the China Ban.
For a triple whammy, J.P. Morgan’s global market strategist, Mike Bell, spoke on Bloomberg and warned all investors that trading crypto was extremely dangerous because it’s highly likely to be banned by all governments. He told investors that he currently values bitcoin at $1,000. (Sigh.)
2. The January Lows
Someone freaking out over his portfolio shared this pattern he discovered:
It looks like crypto crashes around the middle of every January. Do you believe it? It sort of looks like a normal monthly graph, but I want to believe it’s true. I’m not sure if it’s just what we want to see, or if it’s truly a pattern. But, it’s one more explanation nonetheless.
I’m going to start daytrading during this crash session – I figure it’s relatively safe if you sell higher than you bought. If the price of bitcoin recovers to 12k, then I’ll immediately go back to hodling. But for now, it’s like a goldmine! Things are rising and falling by 10 – 50 percent in reliable patterns. Hopefully I don’t get burned!
Do not follow me or rely on my word for your own crypto trading. This is not investment advice – it’s a blog post about my own adventures in trading cryptocurrencies. If you choose to copy my decisions, you do so at your own potentially probable financial peril. I’m not an expert in cryptocurrency trading and do not purport to be.