Steemit Crypto Academy Contest / S1W4 – Reviewing the Instability of the Crypto Market by @cryptobitcoins

Assalam-o-Alikum,
I hope all of you will be fine and enjoying good health with the grace of Allah Almighty. My name is Ali Hassan and I am going to Participate in steemit Engagement Contest Session 1 week 4. This post is actually my participation in @SteemitCyptoAcadmey. So lets start the Article without wastage of time.

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Huge Dump in Crypto Market

Like me and all of the crypto lover or trader are well Known this Btc dump and bleeding of Altcoin. Although BTC investment is Regarded as Highly risky Investment and all the Influencers advice to invest the amount which you can able to bear the loss.

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But this drop was not ordinary and Btc dump almost 50% and Most of Altcoins e.g (Luna and TerraUsd) dump almost 100%.

The king and Leader of Crypto (Btc) dumps to $25k and we see btc after a long time to $25k even some of the Whales and big traders and the people who have knowledge of Crypto were saying Btc cant go down from $30K.

But btc dump to $25k and the we see a pump of almost 10% and we see market a little bit green and btc approach to $28k and 1 day ago we see btc again dumping But Today btc Gain some more Volume and Now trading $29k+.

• As we know that Altcoin follow the trend of Btc so they also fall from thier all time high and now they are almost 90% in loss.

Crypto is The name of Pumps and Dumps.

This Drop/Down fall in my Sense

First of all when btc drop from Its major support which is $42k we and all of the Crypto think tanker were saying that this is Manipulation in market by major Exchanges because when Btc start Dumping thier was number of Good news but market was still showing Redness.

When Btc breaks the Support of $38k we and all of the investors start thinking that market is going to the hands of bears and Bulls are lossing thier hold and same was the scenario that btc fall to $32k and we were expecting it can't go more down but due to some Inflation it go down and Fud of Luna and Terra also came.

But in My advice this is a Time to full our bags and time to move from stable coins to Altcoins and Btc. I also full my bag with Crypto and we will see a huge pump in market soon.

I think don't create fud in market and keep patience and there is no Truth behind the Fuds. I'm also in loss but I'm fully confident that market can't go more down because people start accumulating crypto.

Cause of This Dump

Here are some major causes of Btc dump according to my thinking and Understanding.

• The main Reason about this Dump was That Btc can't able to broke its all time high and the Down trend was start from that day when we see rejection of btc from its major resistance.
  So, after rejection from Its resistance it broke its support and thousands of Accounts Liquidate and most of the stoploss were hit.

So people start selling when they see btc is breaking all of its support and we see a huge selling pressure when btc break $32k support and then Btc hit $25k support and this is a major support of btc and if it break we will see more dumps in both btc and altcoins.

As most of the accounts are washed because of thier High leverage so most of the people don't have money in thier wallets to buy dip and we see just selling pressure in market which disturb the Demand and supply relation and btc fall.

• The main reason for the fall down or dumps of Altcoin was because the fact that whole the market move with btc and Btc sets the market Trend so if btc is falling we will see more drop in Altcoins.

• And the Fud which Completely makes The crypto market unstable was the Unpegged of TerraUSD (UST) which is the stable coin of Luna Terra Ecosystem from $1. When UST falls From $1 thier was a fear in market because we never see the Unpegged of a stable coin from Dollar 1.

Explanation with Example:
If someone Let Ali purchase One btc in $40,000 and sell it in $44,000 and take UST. Now he make a profit of $4000. But when the Stable coin (UST) which he hold falls from $1 to $0.85.

He become worried because the hardly earn profit was converted into 15% loss and we make $1000 loss without any trade. This condition was same with all the holders of UST.

Then a fud create which predict that UST go down and some people sell UST and take some other stable coin e.g USDT but some wait for recovery and instead of any recovery UST start falling continuously and Touches to ground $0.01 but now trading at $0.05 and this situation disturb the whole crypto market.

And same was the case with Luna it start falling just coz of its stable coin and luna falls to $90 and than $74 than $32 and then change into $0.00001 and now trading at $0.0001BUSD.

Binance Investment :

Binance Invest $1.6B in Luna and Now they have $3000.

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• Because of the Fud of Luna TerraUSD whole market move downward.

• Btc and altcoin Prices Increase when New Users came in crypto market and when big institutes Purchase Btc because they hold it for long time. But due to market condition the newcomers become worried and instead of fresh investment we see a huge loss in Market cap As it fall from $3T to half.

• Another Important thing in regard of this dump is the Regulations by the United States Federal reserves take action against the Inflation caused by Btc and they hint to more strict the Crypto Regulations.

• Some other Negative News came which effect the market as some Countries start Banning Crypto transactions and any use of crypto. Some banks take action against the accounts which were involved in crypto.

Tesla Refuse payment:

• Tesla Refuse the Payment through Bitcoin because its CEO "Elon Musk" is against the Power Consumption Issues and Environmental Issues Created by Mining of btc. Although he is also holder of Crypto.

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How far this Dump More

If we take a look on previous dumps such as the dumps in Crypto market in 2013, 2017 and 2020 can never be forget.

If we compare this dump within previous dumps then we make an idea that this condition is some how different from those dumps because people never see such a dump as luna do as it fall from $110 to $0.00001.

But According to my understanding Btc will recover soon because this is a fact that Now people are aware with the moves of btc.

Ups and Downs are Part of life, similarly Pumps and Crashes are part of Crypto.

I will not say this dump a crash because i think it is Opportunity to buy dip and btc will start its uptrend and we will see it stable but recovery may take few months and we have at the end of year we will see btc at $50k+ again.

• Many institutes have start accumulating and buying crypto instead of selling.

Someone well said.

We will never see btc again at $25k

• The Person who has a bit knowledge about crypto know the reality that this is opportunity not need to worry just keep buying and show some patience.

• As we are seeing that btc is trading between $28k to $31k from some days it mean that btc is now in accumulating zone.

• Trading Volume:
  Btc and Altcoins Dump and blead badly but thier trading volume is not much effected according to my observation even luna is showing awasome Trading Volume in this red market and it beat btc for 4 days and remain at top gainers in 24 hours Volume.

Fear and Greed Index:

Market is totally in fear From couple of Months and Now Millions of people Invest according to Fear and greed Index.
As the fear and Greed Index fall to 20 or near it people start purchasing coins and sell it when Fear and Greed Index Go to 70+.
Although in fear market no one buy coins because bad news mostly came in fear market but now people came to know this is shopping time.
Currently Fear and Greed Index

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Previous Record:

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This suggest that people are interested in trading and they are taking this dump a Opportunity not end of Crypto. Increasing Trading Volume day by day is indicating a bull run and huge pump soon.

Recovery of Luna and TerraUSD

Now the Most discussing and hot topic in crypto market is Luna and TerraUSD. As UST is trading at its lowest price of $0.05 and Luna at $0.0001 and hundreds of people who don't put a proper stoploss are in loss and are worried about thier investment so Im going to discuss about the recovery of Luna.

• But if we see the usecase of Luna terra Ecosystem we can say that Luna still has potential to make a huge gain.

Thousands of people Buy Luna for at least $10 because they can bear the loss of $10 easily but they invest in it because as luna crash it can gain same.
Luna was making all time high before the UST fud because hundreds of New projects are launch on Luna ecosystem and the blockchain of Luna ecosystem is very favourable so it is expecting that Luna will recover soon.

• The Owner of Luna Tweeted few days before which is " Good News is coming. Don't sell your Luna" And after this Tweet we see a pump of 1400% in Luna.

But people don't want to take a big risk in luna investment because they Now millions of people make thier wallets zero in few days. That is a negative aspect of Luna Investment.

Instability In Market and Relation with Luna

We see instability soon after the Unpegged of UST and Downfall of Luna. As Luna was unable to control the selling pressure after breaking it three major support and we see it fighting With our Meam Coin Shiba Inu.
People start investing in Luna When it was the early stage of falling but someone well said.

Luna fall from $119 to 0.0001.

Don't try to catch Falling knife.

People see luna down after a long time and they think to make benefit of this dip and convert thier most of assets in Luna but Increasing in supply of Luna ground all the investment.

• Some people spread fake news and make meams that USDT is also going to Unpegged same like as UST and at the same time we see $USDT falls from $1 to $0.90

But thank God USDT become stable after few hours and now at $1. Same like these fake news more came and test the patience of investors.

• But from few Days we haven't see a good news about luna and I think this will affect Luna to recover because millions of people are just waiting for good news in Luna and UST but unfortunately The devs and Moderator of This ecosystem are not much active.

Market Instability and Steem Ecosystem

Steem is major coin of steemit ecosystem and powers the Steem ecosystem. Steem has been become one of my favourite coin since when i read the white paper and studied the steemit ecosystem.

• The price of Steemit also drop same like other altcoins but Steem is one of the few coins who make fast recovery.

You can see the trend of the Steem token was actually downward (bearish) making a series of lower low and lower highs. But after some days, the price was unable to make a lower low point and also a Hammer Pattern was observed there. These are actually the signals of an upcoming bull trend. So, we can expect a huge bull in the near future of the Steem token.

That's all about my prediction and I am not an crypto advisor so you have to do your own analysis before any investment.

• The price if steem coin show a downfall and break its support at $0.45 and fall to $0.15 but today steem is up and trading at $0.26.

• Many people Invested in Steem and now they are worried about thier investment. I want to say them there is no need to worry because I believe Steemit has amazing usecase and steem is down as whole market is in bear trend as the trend reverse we will see Steem in green.

• I suggest all the members and reader of my Article to take this Dump a Opportunity and buy some steem and Power up thier steem Power. I think we have to make a trend that #Powerup #SP.

I already purchased steem coins to power up my SP and also set more orders to Buy more steem because Now steem is at it's very low value and the the Money which we invest now will return us huge and we can use our investment in form of votes and other work on steemit ecosystem.

• Who have rewards in thier Account are suggested not to withdraw now because you will 2x your amount in few months and i will suggest to join #club50 #club75 and #club100 in bear market.

I hope all of these suggestions help you in future. But I'm fully confident about steem It will make us happy Inshallah.

Conclusion

Pumps and dumps are part of crypto and Cryptocurrency is refered as highly volatile Market so the dumps in crypto market are usual so we have to keep Patience and wait when market fall.
Btc and All the Altcoins will recover as a good news came and steem will also recover when btc show some stability. I hope luna will also make a recovery soon but take care of your investment and Do your own research before investing in any coin.

I would like to Invite my friends @awaisash001 @allahnawaz03 @wentz to participate in this contest.

Participation by: @cryptobitcoins