This is absolutely a buying opportunity, and here's why:
Right now, Bitcoin and the entire altcoin market is taking a beating.
It's not even a guess as to what is causing the selling pressure, it is very clear.
China came out a few weeks ago and banned ICOs.
Upon first glance that seems like it would be good news. The ICO markets have been awash with fraud and shysters after the quick buck. A good cleansing of those markets would be great for the industry.
However, China wasn't done yet.
Soon there after, rumors started circulating that China would soon be shutting down all the domestic cryptocurrency exchanges over there.
As you can image that news was quite scary and the prices of most cryptocurrencies have been trending lower ever since.
Then today we got some verification on those rumors as news came out with very credible sources that says China will indeed shut down all the local exchanges by September 30th.
Wow.
Some scary news indeed!
Now that we have some of the backstory out of the way, here is why I don't think it is that big of a deal.
China currently is/was roughly 15% of the entire cryptocurrency markets in terms of volume.
Not an insignificant amount but also not the entire crypto markets either.
Also, the OTC markets for Bitcoin etc will remain open.
That means that the wealthy in China will still have the option of owning Bitcoin through the OTC markets if they so desire.
Then there is the black-market which I am sure a few will gravitate towards to get their hands on some coins.
However, the big reason why I think now is a buying opportunity is because the selling pressure is market dynamics related and not fundamentals related.
What I mean by that is that the Chinese exchanges have been told that they will be shut down by September 30th, which means they only have a few weeks to liquidate their entire holdings otherwise they risk being "stuck".
That is exactly what we are seeing today.
Investors in Chinese exchanges are trying to sell everything they can, while they can.
That is not a fundamental change with Bitcoin or the crytpocurrency space, it is a one time event.
For that reason I think that any weakness in Bitcoin, Steem, or any of the other major crytpocurrencies is a buying opportunity over the next couple weeks.
Also...
I don't think this Chinese news is permanent.
I think most likely the Chinese government will figure out ways to regulate virtual currencies much better and then once they have a better handle on things they will reopen the cryptocurrency exchanges that have the proper licensing etc.
When that happens, it will likely be another "gold rush" type of event in the cryptocurrency space again as those exchanges will again be buying everything in sight trying to build up their inventory.
Those are my thoughts at least.
Stay safe out there my friends.
Image Sources:
http://bullfightingmaza.blogspot.com/2013/02/bear-vs-bull-fight.html
http://weheartit.com/entry/25755763
Follow me: @jrcornel
The Bitshares decentralized exchange welcomes all and recognizes no government, has no borders and is not subject to the whims of any policymaker.
The DEX cannot be shut down and your money cannot be frozen or stolen.
https://bitshares.org/
If you have most of your cryptocurrency portfolio in ethereum tokens you can also use the decentralised exchanges https://etherdelta.github.io, or https://oasisdex.com for trading freely.
Also https://openledger.io built with the same code than bitshares and another one is waves Decentralized Exchange (DEX).
Ive been using this exchange for a while no need to register https://shapeshift.io/ also using the app for coin market nice to follow your altcoin portfolio on IOS
https://info.shapeshift.io/coincapio-web-and-mobile
Shapeshift is not really an exchange, since there is no order book and you cannot store anything in there. But indeed, it is a very convenient way to swap from a coin to another coin. You don't need to register, but they take a little fee ;)
+1 for not having put your ref code here (I guess you have one..)
you can refer someone to bitshares? What are the benefits?
By looking a bit further, I found this : https://bitshares.org/referral-program
Upvoted and Followed. The REAL reason Jamie Dimon of JP Morgan called Bitcoin a "Fraud" (NOT what you've heard elsewhere about wanting to drop the price) a 30-second read: https://steemit.com/bitcoin/@thoughtchain/viral-why-jamie-dimon-called-bitcoin-a-fraud-not-what-you-already-heard
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Bitshares is looking better and better all the time! I keep buying more and fully support the recent initiatives re: rebuilding projects with the help of Hero support.
Also, apparently Btcc is shutting down Sept 30th!!! That means more of the market is going to be looking for a safe exchange... HELLO Bitshares!
re-steeming this for great content! as well as the info re: Bitshares -- People gotta' know what's going on!
Their international business is still operating after Sept 30th
...the plot thickens!
That's what we need.
Glorious decentralization so that things like Chinese government interventions cannot happen.
So glad that Bitshares exists.
I am also part of the SiaCoin data storage network now.
Going to set up a data storage center just to be a part of a decentralized network.
Also looking into other options so that I can contribute towards keeping networks decentralized and open to everyone and without regulation.
Good point!
Yup, once user-base and liquidity improves, decentralised exchanges like BitShares will be the go to places for traders and investors. No government can put this genie back in the box.
wasnt all bitcoin supposed to be like what ur saying ? how come ur able to keep it afloat ? recognizes no government, has no borders and is not subject to the whims of any policymaker.
how do u do it ? i want to know
This bitshares thing looks good, gonna check it out!
Upvoted and I have also bought some steem @ 1.04$ .
Hope it's now end of pullback wave.
very good post indeed - and remember - don't buy all at once - buy gradually over time to take advantage of the average price
Dollar cost averaging...BTC " "
This post received a 4% upvote from @randowhale thanks to @uxair! For more information, click here!
You were right, as seems to happen frequently. Looks like it may have bottomed. Unless I have jinxed it. I doubt I have that power.
Thanks! I hope you don't have that power either! :)
I might be wrong here but crypto is looking to be in the beginning of bear market. Meaning lower highs and lows in long term. I'd be patient, the prices could be much lower for btc and eth in 6 months. Just look at the past.
Also crypto has been going up for 2 years now, there always is an correction and always has been. And when everyone is telling you to buy, you know the there's not much profit to be made by doing so. Just basic trading 101.
I also know this isn't the popular opinion. Some here seem to expect crypto to just go up forever and ever. We are still early, but there will be corrections. It isn't the end of the world. It's rather healthy for the markets. Just hang on tight if you decide to hold and don't check the charts or you'll end up selling at the bottom when it hurts the most.
This doesn't mean the price of 1 btc will just suddenly fall to 1500 dollars. There will be bounces up but they'll always be lower highs. If my prediction is right, this is a start of the first bounce and it will not go higher than 4944 dollars, which is previous high.
Good luck you to all!
Looking in the past is the best thing. Litecoin was for a while for 50$ when Bitcoin was reaching 1k$ and then it dropped as low as 1.50$ The best way is to buy when new people will forget about Bitcoin and will move on.
Exactly.
Great informative explanation. Thank you!
No problem. I'd rather see steemians buying low and selling high than the other way. Sitting in fiat and waiting for a bottom is the best spot to be at now. Once you can clearly see floor that has formed on a weekly timeframe, then it's time to buy. Not after the price has gone up for 2 years from 200 dollars to 5000 and is now coming down fast.
What goes up most come down.
Reality at it best.
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The Chinese govt is shutting down exchanges to prevent capital flight. They have tight capital controls and crypto is a threat to that. The wealthy will always buy property overseas or similar to move funds overseas. The average citizen does not have that option. I am a big believer in crypto but unfortunately I think it has further to fall before the rally.
also can you imagine,
YES YES you were right Dollars! So will China allow to shrink their savings in Dollars?
And you are right about that tight Capital controls. China just jumping ahead and sending a warning signals, to cryptos: cryptos and Bitcoin itself is watched and will be regulated if needed. But China never said anything if the ban will be permanent or temp, and what further action will be taken when it comes to Bitcoin and cryptos.
I believe if someone's lost the opportunity in crypto currency . Now its his second chance
True, try Coinflo.me - just launched! Tied to coinbase but social & much more fun!
Thanks for the analysis, it is very helpful. For how many days do you think it will last the down trend for Bitcoin?
I have a great forecast
i.e bitcoin goes to 1000$.
Lol
DM me after it's happening.
I'll give you a look on my secrets .
Although I'm new to this platform #steemit.
So no posts there but you can see that one of my concept.
It may be a prank....
https://steemit.com/earn/@ronny-handsome/got-free-usd-awesome#comments
Thank
Happy to help
Regards
@ronny-handsome
Spreading smiles.......
judging based on the slope and RSI i think its over people who wanted to back out have backed out. Its time for the bulls, I surely am one of them!
good luck :)
Basically China is asking Bitcoin "bend the knee"
We will see how the story will continue....
I is not one day / one week / one month event..... It will last longer: The winter is coming!
Now until approx. Thanksgiving is the window to buy, after that could go to $10,000 by NYEve
This information really help because i have been since the drop of bitcoin,hope this chinese wont spoil market for us.this info helps alot.