What Goes Up, Must Come Down.
What goes up, must come down" is the internationally respected and accepted saying that has been translated into many different tongues to cater for language barriers globally, except for the cryptocurrency market that is, things work a little differently over here. Bitcoin has just suffered one of the largest falls in its small historical timeline since creeping into 2018, falling from a near $20,000 all-time high achieved year-end 2017, to a miraculous breach of the $8,000 support region by the 1st February and successfully hitting the level pinpoint at the round number the following day. The January tumble has wiped more than $44bn off Bitcoin market capitalisation following a number of reoccurring themed events in the cryptocurrency market causing the same repetitive cycles of FUD (Fear, Uncertainty, Denial) and heavy manipulation to ensure the price is driven down exactly where the government and financial institutions want them.
After such a historical climb to $20,000 it was becoming inevitable that a hard crash down to the next logical support level from a long-term perspective was needed to bring the market back to having two-feet firmly kept on the floor and face the harsh reality of how markets work in all walks of life, not just in the clouded perception the crypto market managed to perceive many to believe is a standard of dynamic behaviour. Looking at the Weekly and Monthly charts, Bitcoin had barely seen a candle push and sustain to the downside for around 3 months prior to the climb to $20,000 where even then, the pullbacks were clean retracements relevant to the size of the bullish rise and working closely in line with valid psychology support levels and Fibonacci retracements that a majority of both and minor investors use as a standard of technical analysis. BTC began climbing in patterns of $3,000 - $4,000 to the upside, then followed by $1,000 - $1,500 to the downside to fulfil at least some form of an acceptable pullback to justify a continued uptrend. This suddenly changed after completing a retest of $6,000 around the start of November 2017, where price soared remarkably to a peak of $20,000 in just 5 weeks time barely flinching to the downside during the process.
This created an opportunity for the global elite to begin putting their greedy hands in the web of a market to fulfil their own agenda and grab a piece of the pie they so righteously believe they deserve. The term FOMO (Fear of Missing Out) is critically what these entities used to aid the drive to $20,000 without doing much work themselves, instead leveraging their global networks capable of social manipulation and subliminal programming to create a sudden urge that it was now or never to grab the ticket of the get rich quicktrain. Overpromising articles from the likes of Bloomberg claiming drastic lies such as 100K BTC by the end of 2018 was the simple yet perfect formula to let the dumb money drive the price of the Cryptocurrency market whilst the sneaky elite already had their positions set in the low 1000s of Dollars boundaries, meaning no need to further artificially pump the price with injections of multi-billion fiat deposits.
The replacement for fiat injections via the government was U.S Dollar Tether. USDT is a blockchain based digital currency designed with the sole purpose of acting as the actual USD itself. Many places that allow you to transfer between crypto and fiat currencies also offers USDT as an option. There only one problem..... The USDT is backed by absolutely nothing, besides claims that for every 1 USDT the company Tether Limited holds 1 paper-value USD in reserves to back up this crypto/currency alternative. This can be magically generated into existed just how the Federal Reserve can do so through quantitive easing etc. Except, unlike the FED, USDT has out of nowhere began being generated almost every day in the millions. USDT is quickly becoming the go-to crypto of choice when selling your crypto for profits to sustain wealth during market corrections due to its stability. It also the method of choice when buying cryptos, in particular... Bitcoin. The supply of USDT has increased by 43% in November alone, with the total market cap surging from $15 million in January 2017 to $646 million at the time of this writing Tether has NEVER released an audit proving they even hold these reserves they claim they do and it no coincidence that just like clockwork after the multi-millions of Tether have been printed, Bitcoins price begins surging ridiculously. The company was essentially diluting the market with Tethers for the sole purpose of pumping Bitcoin even higher with artificial money.
As the mainstream began becoming increasingly aware of the monster growth and huge possibilities of profiting from cryptocurrencies (Ethereum incredible success contributing to newbie sparked interest), it became apparent that many of these investors had never invested prior at any point in their lifetime, meaning their first ever taster of putting hard-earned fiat into something with a reasonable outcome of success was the wildest market the world has arguably ever seen in terms of performance and irrationality... When you combine the irrationality and over-emotional tendencies of a new investor witnessing price fluctuations up to 100% and beyond in some cases, it was clearly a recipe for future disaster, a ticking time bomb so-to-speak. Once the global elite had captured the share of uninformed investors into the market by the masses, they now had the perfect opportunity to continue letting FUD be the sole driver of directional bias they could select at the click of a finger. Fast forward the unleash of CME Futures for BTC and you suddenly have the ability to short Bitcoin for the first time ever on a global-scale where Wall Street is the sole-driver of capital coming in and out of these contracts set to a limited time period of expiration which you guessed it, means they now have a limited period to drive price in their favoured direction for maximum profitability on the day of contract expiration. When the CME Futures hit the market it was no coincidence that suddenly the media outlets became anti-Bitcoin and regulatory threats against the king of crypto were being offered out seemingly for reasons they couldn't justify themselves, sending the market into a frenzy of panic to sell-off everything in their name after being seduced to join the bandwagon of an overvalued market near all-time highs with the perception that price would only ever go up. This soon became the staple fundamental driver of the cryptocurrency market and is likely to only grow a bigger threat as the influx of new capital flows in during the period of 2018.
Can we blame these new investors for acting so fearfully at the slight dip of price valuation? Absolutely not. An investor who is new to the Forex & Stock market is irrationally overthinking processes as it is, that with movements barely breaching 1% a day. Combine that exact inexperience with a market that has no intention but to chew you up and throw you into a tornado of volatility that will leave your portfolio shaken, not stirred, every single second of the day. The drop to $8,000 has given the new investor capital a massive wake-up call and it the greatest lesson they could learn, especially considering we are only just arriving into the second month of the year and considering like many they jumped on board just before 2018, they have lost money incredibly fast and will now be broken, emotionally unstable and angry at the market now aiming for revenge and a quick comeback. This humbling lesson means the new money will now be slightly more calculated with their investments moving forward, but also extremely greedy with how fast they flood the market with the last pennies they have left meaning the reversal we are about to witness from the final stretch of this correction (likely peaking at $6,000 per BTC) will a deadly combination of this greedy newbie money and even greedier capital from the corporate giants who have finally fulfilled their targeted strategy of a broken market ready to be overfilled with billions of unnecessarily printed money from the likes of each regional central bank.
The going looks tough right now, believe me, it isnt pretty. But as all markets go and as veteran investors have proven over decades, the patient investors accumulating at such discounted prices or simply just waiting out their holdings will be part of the grandest bullish market the world has ever seen, where yes, the same will then proceed when the market corrects to the downside, on a scale bigger than the world has ever seen. Once you accept that what comes up must go down and you haveve been a spectator or participant of a correction this brutal, youre already more prepared than 90% of the population still not involved ever will be.
