Traders in Crypto currencies are nervous wrecks at the moment. Many people lost a lot of money recently when Bitcoin dipped 30% in a matter of days. Weak hands started selling, falling victim to all the China FUD that has permeated the news in recent weeks.
This saw huge sell offs in mainland China but also across the board as people scrambled to cash out fearing the worst. But as has always been the case in the last few years, Bitcoin quickly bounced back to around $3,800 in a matter of days, bringing the fortunes of Alt coins along with it.
Bitcoin has found support around the $3,800 mark for now but the big question is, where to from here? Its been days and the marker has been tracking horizontally.
To me it feels like investors are waiting for something to happen. We know that Chinese exchanges are shutting down in October and I think people are still a little spooked by that. Couple those events with the continued JP rhetoric that Bitcoin is a massive bubble and has zero value, and its unsurprising that mum and dad investors are exercising caution with their investment.
After falling to around $200 USD, Ethereum has followed a similar trend to Bitcoin and now oscillates within a narrow range around the $280 mark.
Although trading volume of ETH is certainly down, it remains strong. What remains to be seen is how the upcoming forking impacts on investors desire for this coin. The commentary is that this will improve both scalability and security, so this even is both a buy and sell driver for investors. Check out recent price action comments at Australian Crypto
To buy or sell?
The market really is incredibly delicately poised at the moment. Many feel that Bitcoin is still very much over extended. Levels of support in the $3,800 range indicate that institutional investors still don’t necessarily believe that to be the case. I had expected further falls for Bitcoin which would drag all other alt coins down but at this stage it certainly doesnt appear that way. I feel that Bitcoin has risen too strongly and that we are due for further correction.
Although I believe we’re still about to hit a downturn, I feel that some buying opportunities are about to present. I’m not planning to sell yet.
I’m certainly positioning myself for buy orders and anticipating further falls. Will we get to sub $3,000 again in the next few weeks? Quite possibly not however I am being patient and waiting for that drop so as to capitalise on some of the key players including BTC, ETH and NEO.
Only time will tell and the thing is with investing that nobody gets it right all the time, investing is all about understanding human behaviour. Whatever you decide to do, as always make sure you haven’t overextended yourself!
** This article is NOT financial advice and should be considered as part of a broader financial strategy **