If you, like me, woke up today with a shocking ~20% drop in your crypto portfolio, I have a couple of things to tell you.
First of all, events like this one are not uncommon in crypto.
Second, this too shall pass. In fact, by tomorrow it will all be over and we will continue the climb up – at first, it will be slow, perhaps it will take a few days to go back to the price levels we had yesterday, but once we break through the resistance levels, we will resume the next leg up in this bull run.
In the meantime, this is causing a major shakeout of the weak players on the market and the whales will accumulate even more during this “sale” opportunity.
Diamond hands (or strong hands) shall be rewarded and weak hands will be taken out. That’s how the markets work.
First, we had the mainstream media blasting news about Turkey banning crypto, this didn’t make too big of an impact actually, but then they added the older news about India’s proposed ban – this is something that we heard about back in February and March, but it also didn’t cause much panic back then, so they are now rolling this old news out again, just to add more FUD to the picture.
It is not unusual to see mainstream media coordinate efforts in bringing FUD in regards to crypto and they usually do this for a few days, then they “forget” about it, usually, after the big pockets whose interest they’re serving have been filled up….
In fact, what we are seeing right now is that the whole crypto market is undergoing severe correction as multiple news of crypto ban combined with rumors that US treasury is planning to charge several financial institutions for money laundering using crypto made headlines at major publications. Though this is not something new to crypto investors but in the short term it has led to extensive Bitcoin liquidations.
It is mind boggling that due to to panic selling today we saw over $10 Billion worth of Bitcoin positions being liquidated, making this seemingly the worst ever Bitcoin Dip in such short duration. The Bitcoin price broke below earlier support levels and fell down to $50k levels. All major altcoins took a hit as well and are trading at critical support levels.
Should you be worried?
Seriously, I can’t stress how important it is to have a strong hand in this kind of situations. the fact that this is happening on Sunday is also very indicative of the typical shenanigans that occur in crypto. Market manipulation is at its highest on weekends when the trading volumes are much lower than during the week, as professional traders, institutional traders and corporate employees are all off and the weekends, especially Sunday is the perfect window for market manipulation. This is why I am certain that this will not last much longer and by tomorrow we will be back to normal.
Bitcoin will recover to 59k in no time, then it will conquer the $60k level once again and from there it will take its next leg up toward the $68k – my next target price for BTC in the short term.
I was going to jump on a quick live stream today, but instead I decided to post this article and tomorrow in my next episode of Crypto Corner we shall revise this situation and discuss what happened.
See you tomorrow, make sure you catch me at the usual time when I air the Crypto Corner Video Podcast episode 206.
Until then, stay safe and have a strong hand!