It has to be said so clearly: Last week was brutal. A Bitcoin plunge does not leave even hardened Hodlers indifferent. So should we follow the trend and fall into collective panic? What are the reactions from the scene? An overview.
Those who took the lead in the 2017 FOMO bull run have since posted losses of over 70 percent. Nevertheless, this downward slide also needs to be assessed.
Bobby Lee: The four big mistakes of the Bitcoin investment
Already after the chaos of November 14th Bitcoin veteran Bobby Lee reminded us of four fundamental rules for a successful crypto investment. Above all, rule four now applies more than ever:
Remember Common Mistake #4:
Selling your #Bitcoin during a panic crash.
If you’ve invested in #Bitcoin, then you should know that it’s a long term holding. You’re not looking for quick profits, so don’t get impacted by volatile price movements in the short term. Don’t panic sell! https://t.co/y9EyIq7qc7
— Bobby Lee (@bobbyclee) November 15, 2018
Crashes are part of it
Those who have been there a little longer can certainly take the recent descent with more composure. Newcomers should know that Bitcoin crashes are a part of the experience. If you think that current sales are substantially different from previous crashes, this table is recommended:
John McAfee: Winter follows spring
Bitcoin preacher John McAfee is a man of conflicting opinions. But he sums up the current situation aptly via Twitter:
“People have panicked. But that’s […] not necessary. We are in a bear market. They suck, yes. […] But I am 73 years old and have seen this dozens of times in many markets. Bear markets are like winter. There’s always a glorious spring coming.”
The only question is when.
Where is the journey going?
Of course, nobody knows how many springs Bitcoin will leave before the ground is reached. However, there are a few promising support levels where a reversal of trend is possible.
Chart analyst Murad Mahmudov believes that a crash to 3,000 US dollars is possible, but that’s the end of it:
1/ The unwind is far from over. pic.twitter.com/K6zfhEOHk2
— Murad Mahmudov ? (@MustStopMurad) November 15, 2018
Perhaps it helps to remember that the infrastructure continues to develop positively, contrary to the exchange rates. Examples include Fidelity’s crypto-trading desk, BAKKT futures and the approval of a crypto-ETP in Switzerland. The signals are therefore pointing upwards. Sooner or later, this will also manifest itself in the price.
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