To be honest. I‘m a little bit scared looking at the Bitcoin development!
After thinking a while about the current situation, sitting in a train and drinking beer, a theory came into my mind:
The explanation of the situation and Why NOBODY has to worry.
The dip in January happened the last 4 years. All experienced crypto trades are aware of it. So they wait for the first sign and move money out of the market to secure profits and to buy later again. This year it were the announcements of Korea and China. Not a big thing. But enough to get it started.
At the same time a lot of people invested in crypto, who are not experienced, are not aware of dips happening and also step out. But for them it’s not strategy - it’s fear to lose.
This goes on until the experienced trades decide to buy back with the money stored in fiat. Market recovers, additional people get attracted by the rise and at the end more money is in as before.
The conclusion: No reason to worrry - but changing the strategy for next year. Maybe for the next cyclical dip coming.
Topic: The explanation - Where is the dip coming from? Maybe I can explain (Read 133 times)
January 17, 2018, 03:15:51 PM
Jump to: