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Introduction
Hello everyone and welcome to another article to my blog Vendata's journey of the crypto world! Doing my usual crypto checkup, I go onto CoinGecko and find that essentially every cryptocurrency has crashed! I was astonished: Bitcoin - under 55k, losing over 5k in the past day; Ethereum - about 2200 USD, losing over 300 USD; and so much more. It disheartened me to see such a crash occurring, especially when yesterday the crypto market was going extremely well, almost every cryptocurrency falling! Now, the question is what is happening? Why is it happening? What do I do? Hopefully, with some analysis and research, I can answer these questions and help not only you, but myself adapt to the crypto market. Also please note that this is not financial advice and I do not take any fault for any incidents to occur from the information given, particularly in regards to capital loss.
Analysis
Okay, so the crypto market is going down... it is not changing - still the same. The best thing to do now is to think rationally: do not panic sell - wait. Being new to the crypto market, selling seems to be screaming at me. I have done it many times before, and I have mentioned it many times before, and you if you have heard me talk about it, you know that I regret selling it. The best example was with WazirX. I bought it for under 1.50 USD when it experienced its first massive pump. It kept oscillating up and down, and I thought I could buy when it goes up a bit, then sell when it goes down a bit, and I did do that. However, WazirX began to go down, and down... I needed to sell. Sold it at a loss. The next few days, WazirX is skyrocketing, going I believe over 9 USD at one time. If I did not sell, I would have made about six times the amount I had. Six times! So what is the lesson from my example: wait, have patience! Let's look at the king of the crypto world Bitcoin (BTC) and see if any patterns can help us make our next moves.
Looking at BTC's trend over the past year, this is quite normal. Every month there is a mass drop, followed by a great rise before the next crash comes. Over this series of pumps and dumps, there was an overall increase in BTC, going from 5k to over 50k, which is a 10 times increase - great for investors.
Moving on to the BTC's daily trend, you can see that BTC is recovering. There was an overall slow decrease over the past hours before it slammed downwards at about 3 o'clock. It rose a little over 3:15 am but then crashed down to its lowest of about 50k at 3:30 am, before coming back up in a series of ups and downs. What does this mean? BTC is recovering, for now.
Now, this does not only apply for BTC: look at any other cryptocurrency within the top 100, and you will see almost every one of them having the same trends.
Speculations & Predictions
This crash is normal and possibly will not end anytime soon. We saw how BTC had crashed and recovered over the past year many times earlier, and this is now another time where BTC and altcoins have experienced another crash. I repeat, this is normal: do not panic, do not go selling all your crypto - you will regret it. I would not be surprised to see BTC go down even lower to maybe even 45k, but it will then boost back up over time, moving back to its general trend upwards.
What is happening can be related to demand. Right now everyone would be selling at the time of the massive crash, but will such a great fall, you will know that investors are not going to let that fall out of their hands: they will buy BTC, taking the most of the loss to their advantage. Suddenly there is a great influx of buyers as the price crashes, and soon BTC recovers, which is what we have seen with the daily trend. It is still possible, as I have mentioned earlier, for BTC to continue to fall, more and more people panicking and selling, the demand going lower. But there has to be a point where the demand stops falling, and when it does meet this point, BTC will boost back up, mightier than before, and thus BTC recovers to move further upwards.
What To Do
Okay, so we know what is happening. We know what could happen. So what do we do? Before I answer the question, please note that I am not giving financial advice, rather giving this for entertainment and educational purposes. I take no fault for any incidents that occur, such as capital loss, and am only giving my personal opinions on what people should do for the best outcomes in my beliefs.
Personally, the best thing to do is two things: hodl and buy. If you are with a cryptocurrency and you find it crashes, hodl. Wait, eventually, it will push back up, and before you know it, profits begin to occur. If you are looking to buy crypto: now is an excellent time. With almost everything crashing, you cannot go wrong with what you choose. Knowing that it will recover to its previous price, you can guess how much you will make in a short period, perhaps a week or so. For example, buying BTC now at 55k can mean that you make about a 10% profit, going back to its previous price of approximately 60k.
Conclusion
That is the end of this article. This crypto crash is I believe the first one I ever experienced, and it is disheartening and tragic, but by analysing the market, I feel much more optimistic, knowing that it is healthy for the crypto world. Once again I repeat that this is not financial advice and I take no fault for any incidents that occur like capital loss, providing this information for entertainment or educational purposes only. If you want a final message for this article, it is this: hodl and buy. Hodl if you are with a cryptocurrency, or buy if you are looking for a cryptocurrency. I hope the information is helpful and works well, guiding you into the right decisions for the crypto market!
Analysing the crypto's market crash, I find that it is not what I first thought it was, learning new trends and becoming more experienced with the crypto world.
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May aske a question how can I put an image on my post because they always say login to your posting key, I did not seeing any image after uploading, thank you so much
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With adding an image, I find that using the "upload" option does not work with me, but the other one, which is through a link does. What you can do is go to an uploading website like imgur.com, upload the image you want, then copy the link of the image you uploaded. With the link you get place it into the image link options and there you go, you are done!
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That sounds great and thanks for your comment!
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