BITCOIN CHART Analysis - 1 Feb 2018 - sharp dive into the crash?

Yesterday I wrote about the point if bitcoin would break the line of 10.000 dollars, it would go straight through to 8.000 dollars as next support. Today the dive continues.

As of writing this, we are at 8.950 dollars. This means we broke the 10.000 dollars, we went through the 9.000 dollars with ease and are going straight to the 8.000 dollars.

Should you sell now in order to buy in again little later when the price is even more down? 

This might sound incredible smart in theory, but let's put it straight. It is very difficult to time the market. Because you should first set yourself a goal when you would like to get in again. Would it be like 10 or 20 percent under your sale price? How will you react if the volume on the sell off standpoint would go up? Would you cancel your purchase order? Would you set a new order? Or wouldn't it be just better to wait for the bottom? Here again, we have no idea where the bottom line will be. So acting now might be hurting you later.

What about hodling?

Crypto believers are very much into holding, since it has kind of scientifically proven in the stock market that just holding stocks gives you in the end a better yield. Alright. But hodling in this market needs a lot of stomach. And as I always say, if you can't support the 60 percent dive you might not support the 100 percent upwards trend neither. So yes there is a lot volatility. The hype was incredible last year. There was fraud, there was and is market manipulation at its best and a media coverage that hates crypos. And then we have Tether the biggest crypto fraud with Bitfinex.... omg... Will this go away anytime soon? I doubt it. Tether might. If you think that you could easily survive mentally Bitcoin going down to 2000 or 3000 dollars you are fine in this market. If you are not afraid of losing everything, stay in. But let's be also clear. If you think losing more money would rekt you, then take maybe your money out but please do not come back to cryptos. This game is over for you. Because we have to be honest here, we have no idea if the market will come back again.

Are we getting played like puppets?

Since the future market announcements, since the adoption of the futures, the crypto market went crazy. So there is obviously some big money in the market involved and this big money seems to play us definitely. Us the small retail investors that just look for a double of their investment. So it might also be possible that some of those whales or just very rich market insiders play us. They pressure the price down and when it is at a price they like they buy in and the price will be doubling over night again. And always, we will have missed this. By the way, if you were hodling since you bought for example at 10.000 dollars you actually won't profit if the price would jump from 2000 dollars back to 4000 dollars. You are still losing.

So here we are again. At the moment you can only lose in the crypto market. But if you like me got into it way to late you might be interested to just stay in it a little while longer. But be aware the pump back might take longer than expected. You might lose all you put inside or at least a lot. The next crash is immenent with Tether and Bitfinex going down. The insider trading will not stop as well as the market manipulations. All of this will fire up the negativ press about cryptos. Yes it might be bearish for a while. But in the end, let's hope (oh yeah hope, sure), you will be fine. Take your time. Take your chips from time to time from the table. And don't get blinded by too much crypto scam and gurus out there. Stay sober, rational and understand what is going on here. It is the dirty wild west of investing. Therefore we are here. You are here.

Do you have the guts?

DISCLAIMER: I am not a financial, legal or tax advisor. These are my mere personal reflexions on the crypto markets. Make always up your own mind.