Yes, BAT took a nosedive after Coinbase listing but that should not worry you

BAT was the token of the week when it comes to attention grabbing (pun intended). After a strong rally in anticipation of Coinbase listing, BAT did what every experienced trader expected it do to – it dumped hard. Today is BAT 17% less worth than yesterday and the bottom is yet to be found.

The smart money entered in BAT on time, sold near the peak and probably already filled their bags with one of the new potential Coinbase listings: XLM, ADA or ZEC. The FOMOers were, as always, late to the party and are stuck again with a bag of tokens. The good news is that BAT actually has solid fundamentals and it is bound to go up again but it hurts when you tie your own hands and have to wait it out to break even and start trading again. We all went through it – make sure it is a learning lesson.

Anyone interested in BAT needs to read the Brave roadmap. Ad integration into Brave-core will be ready by release .57x. If you look at their milestone schedule that’s Dec. 4th, the next version .58x is Dec. 20th. The eco-system will be taking off in months, Brave is a game changer.

BAT is the prime candidate to see a real pump, like in the good old days, once the bulls are back in the market and we experience a new wave of investors that will come to Coinbase and see a nice, cheap token they can buy and hope for the moon.

What causes this nosedive?

There is a famous investing adage: “buy the rumor, sell the news.” If you observe crypto markets for a certain amount of time, this advice has been proven true more times than not.

Markets are typically driven by emotion and because of this when a rumour with expected positive sentiment comes out, it generally means the price is going to increase leading up to the actual news release.

Probability shows that more often than not this pump spikes when news is released and then a subsequent correction occurs.

And don’t think this is just a cryptomarket phenomenon, it’s a market phenomenon. For example, Apple’s share price increased leading up to the PC for it’s new Iphone. After the PC the stock dipped likely because traders were realizing profit at the top of that particular pump. As the date of the big news come near, first buyers slowly start selling their early buys and taking their profits. Once the rest of the market takes notice of this, they herd in to do the same which causes a price slip like this one.

Read our comparison of Brave vs Firefox.

How to Play Rumors and News

Thus one could say the best moves would have been:

  • Buy positive events that occur without rumor.
  • Buy positive rumors.
  • Sell negative rumors.
  • Sell before or shortly after any event that positive rumors have been building up to.
  • Sometimes it can make sense to buy before any event that negative rumors have been building up to.
  • If an event doesn’t occur on time, the price will almost certainly drop, so consider having stops set.
  • Always consider that this is all a matter of probability, nothing HAS to happen the way one expects.
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Rene Peters
Rene Peters

Rene Peters is editor-in-chief of CaptainAltcoin and is responsible for editorial planning and business development. After his training as an accountant, he studied diplomacy and economics and held various positions in one of the management consultancies and in couple of digital marketing agencies. He is particularly interested in the long-term implications of blockchain technology for politics, society and the economy.

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