Crypto crash in uncertain times can be a little hard but let’s cheer up
Crypto crash in uncertain times can be a little hard but  let’s cheer up

Crypto crash in uncertain times can be a little hard but let’s cheer up

By Greenchic | Investing and Trading | 12 Mar 2020


 

crypto crash

 BTC fall

Wow wee… Today, cryto markets fell down, in the most crazy fashion and I could not help but notice it enough to write on this.

6500 support

 

The worrying thing is BTC is below it’s old strong support of 6500 $, most of us think that as long BTC holds to 6500 $, then its ok, it would climb up to 12,000 $ or more due to upcoming halving event on May, where BTC miners rewards get slashed again by half.

Post halving period, BTC usually reaches ATH, this time, the crypto world was talking about BTC price going to 1,00,000 $ or 2,50,000 or even more. Good news I think is now the RSI is looking oversold at 19 level, so accordingly BTC current valuation is very cheap, it’s worth way more. The question is if the bottom is reached and looks like it has not as prices of BTC is tumbling below 5800$, who knows it may go till 3315$ as well, the price it was at Feb last year.

2019 BTC February price

 

However, in between these levels there are several support zones I feel -5636, 5105, 4722, 3775 etc and maybe BTC would find support anywhere at these levels.

Carona virus related news causing fall!!

Well, I should feel quite terrible, but I feel nothing, well, it’s not in my hands if Carona virus news that is causing panic sets crypto to tumble down.

https://cryptopotato.com/coronavirus-infected-crypto-bitcoin-tumbles-below-6000-to-its-lowest-price-since-may-2019/

I just read that Trump banned European passengers from flying and landing in AMerican soil and as a result of that this reaction followed. It’s just that most people are not investors, they freak out when prices fall, and prices react positively and negatively to various world news. I don’t fall into the category of a FOMO crypto creature, I am a more savvy crypto enthusiast cum investor and know that BTC prices would come back to normalcy, sometime when volumes pick in. There will be the smart creatures that would invest in BTC and other cryptos when price is relatively lowest and then enjoy profits as BTC goes up(: … now looks like a good time maybe?.

FOMO investor psychology been played out I guess?

There is so much in the crypto verse with margin and futures trading that when prices fall, they fall double due to liquidation and stuff. I am glad that I am cool in these red uncertain times in crypto, because just last year I would have FOMOed, panicked and sold out at such a low price, caught between ruthless selling in exchanges with prices in every sell coming down and down.

I used to get greedy and buy when prices were going up and sell when it was going down, such an idiot I was, I finally changed my mindset, to wait long term and watch price action, notice support and resistance levels, volumes, and momentum indicator, moving averages but in times like these when there is crazy panic selling, technical indicators not working actually, only know when price is below 200 Moving average in daily chart, people sell in panic. However, previous price actions and support levels can guide one on seeing where the price will bottom out.

Multiple crisis around us sadly but crypto I feel is the future

Right… I understand, it’s crisis situation - global economy, Carona virus scare and political uncertainties besides all that is happening in other blockchain writing platforms like Steem platform. So, just chill for now. I know money is precious, hard earned and how much it pains when it’s lost even in investments, but I am sure crypto will be the future and prices of BTC, ETH and other cryptos would normalise. I can’t comment on stocks, I don’t follow much, but I hear, the risk to invest in stocks is high anyways and there is more likelihood with the current global economic conditions that stock prices would crash and stuff, as recession would come about.

US Dollar value can be affected due to Fed rate cuts

It would be interesting to see BTC’s price reaction, will people invest their money in BTC besides gold, silver, LTC, ETH (main cryptos) when crisis sets in. I hear that with the Fed in the US cutting rates, it impacts the interest the depositors earn on their deposit money and there is likelihood that in near future US dollar value would tumble down. Since US dollar is a global currency used as foreign currency reserves by the world, it’s going to have a crushing impact world over. So, anyway, crash is emitent, and crypto, well if it’s viewed as hedge against fiat currency then prices would shoot up just like how it tumbled now.

Factor in the Indian population investing in cryptos with it becoming easier currently

India, the second most populous country in the world now is free to trade cryptos as RBI’s ban on banks to not serve exchanges and any entities dealing in cryptos is removed as of now. When this major big population take to BTC investing I can imagine that surely BTC and crypto prices would boom and that time is not far away as halving is just a few months more.

Dilema for even us on where to invest our money nowadays

Anyway, I am not savvy enough to give investment advise these are my ramblings, please have your own view based on your study and understanding. However, just a thumb rule, invest only what you can afford to lose and definitely not all your hard earned money. Also diversify, cryptos, gold and silver ETFs, maybe pension and stuff, besides base investments on insurance(life and health), so your covered during troubled times. Cryptos, should aid in wealth creation, I feel, but of course monitoring, reading and understanding it is important. It’s important to have financial wisdom, because even educated are at risk because we could earlier afford to believe that investing in Government bonds, mutual funds is good and safe, but even financial advisors who will sell all this, may do it for their sales targets rather than recommending the best for you.

 Plus what if your money is not safe in banks?

https://thewire.in/banking/watch-wire-business-report-yes-bank

Where can you put your hard earned money? I don’t know about banks of other countries but in India, a private bank Yes Bank, had NPAs, with Corporates that are not capable of paying back money given loans which is now unrecovered. Due to this, Yes bank did not have their depositor’s principal money. I heard that RBI intervened through some measures such as public sector bank State Bank of India(SBI) buying a stake of Yes Bank. Now with that move, Yes bank gets funds to provide for depositors and retain employees who would otherwise have been laid off. However, this indeed even stresses the educated on where they can put their money. Hard times...anyway, I can sense a lot of stress.

Keep well in these Carona virus epidemic times!!

I end this by telling everyone to be careful out as Carona virus is out, you know what to do. Wash hands with soap, use sanitizers before touching your nose and mouth when outside in public spaces, and stay away from sick people and if you feel sick stay indoors, take rest, take plenty of rest and fluids. Carry clean handkerchief or tissue paper and sneeze closing your mouth on the handkerchief and not on open surfaces!!


Greenchic
Greenchic

I love to write on things I am passionate about - environment, citizens activism, crypto and life in general. I am a cat enthusiast, nature lover. I am excited to engage at the Publish0x platform by reading and writing crypto and other content here.


Investing and Trading
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