Bitcoin Tanks to $10,000 - Buy the Dip!
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