Buy the Dip?

Boxmining

6.4K views 339 5 years ago

Description

Bitcoin prices fell drastically over the past 30 hours. Crypto traders are now looking to stock up USDT and buy the dip. We look at some Technical Analysis and to see where it's all going #Bitcoin #C...

Bitcoin prices fell drastically over the past 30 hours. Crypto traders are now looking to stock up USDT and buy the dip. We look at some Technical Analysis and to see where it's all going #Bitcoin #Cryptocurrency #Crypto 👍🏻Subscribe to Boxmining for Cryptocurrency Insight and News: https://www.youtube.com/c/boxmining 🔒Hardware Wallet: http://boxmining.co/ledger 👍🏻Brave Browser: http://boxmining.co/brave 📲Enjin Wallet: http://boxmining.co/enjin 👍🏻Unstoppable Domain: http://boxmining.co/unstoppable 📲Binance Exchange : http://boxmining.co/binance #Bitcoin #Ethereum #Cryptocurrency ●▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬● Telegram groups (Discuss Crypto with us!) Telegram Discussion Group: https://t.me/boxminingChannel Telegram Announcements: https://t.me/boxminingChannel ●▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬● ♨️Social (Add me on Social Media!) Instagram: https://www.instagram.com/boxmining/ Twitter: https://twitter.com/boxmining Facebook: https://www.facebook.com/boxmining Steemit: https://steemit.com/@boxmining ●▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬● I'm not a professional financial adviser and you should always do your own research. I may hold the cryptocurrencies talked about in the video. ●▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬●

AI Analysis

The video provides a detailed look at the recent drop in Bitcoin's price, analyzing the widespread "buy the dip" sentiment and offering insights into potential support levels using historical data. It contrasts a long-term, disciplined investment strategy with the desire for quick gains, while also addressing common market misconceptions and the influence of mainstream media.

Here's a breakdown of the key points:

* The Recent Bitcoin Dump: Bitcoin experienced a significant price drop recently, which immediately triggered a surge of interest from over-the-counter (OTC) traders in Hong Kong. These traders, who typically don't reach out for USDT (a stablecoin), were suddenly asking for it, indicating a strong desire from Chinese traders to acquire USDT to buy Bitcoin at discounted prices.
* "Buying the Dip" Frenzy: There's a pervasive sentiment in the crypto community right now, with everyone looking to "buy the dip." It's almost like a Black Friday sale for Bitcoin, and people are eagerly searching for the perfect entry point.
* Historical Support Levels for Bitcoin: Looking at past price movements, previous resistance levels often transform into future support levels.
* Immediate Support: The range of $8,200 to $8,400 is considered a potential support zone based on recent historical data.
* Deeper Dips: It's possible the price could drop further, potentially testing the $7,500-$7,700 range, which was observed in July.
* Significant Lows: The $5,000 mark is often discussed as a possible bottom, drawing from Bitcoin's price in April.
* Extreme Lows: Some even look back to February, when Bitcoin was around $3,700, highlighting the wide range of potential bottoming prices that people are considering.
* Personal Investment Strategy – Controlling Greed: While there's an undeniable appeal in getting Bitcoin at a 20% or even 50% discount, taking very fast, short-term trades in the current volatile market is extremely risky. The price could swing drastically in either direction, and he personally wants to avoid that high-risk exposure.
* Advocacy for Dollar-Cost Averaging (DCA): He strongly advocates for dollar-cost averaging, which involves investing a fixed amount regularly over time, regardless of price fluctuations. He considers this his "control zone" and humorously admits to feeling like a "DCA preacher."
* Long-Term DCA Plan: His current plan is to dollar-cost average his Bitcoin purchases over six months, though he's considering extending this to a year. He believes the strong upward momentum needed for a significant bull run hasn't fully materialized yet.
* Insights from Offline Events and New Money: Attending major crypto conferences, such as the ABBA Summit in Taiwan and Invest Asia in Singapore, offers crucial insights into market sentiment. While the consistent, long-time players are still active, he hasn't observed a significant influx of new capital or "new players" entering the market yet.
* Why Offline Events Are Key Indicators: Large institutional investors or funds looking to deploy millions or billions of dollars typically send representatives to these events to gauge the market and "scope out the situation." The absence of these new groups suggests that a major wave of fresh institutional investment is still some time away. He feels it will take a while for this to build up and for overall community sentiment to become strongly positive.
* Critique of Mass Media: He points out that mainstream media, citing a Bloomberg article warning of "more pain ahead" for Bitcoin, often focuses on fear-mongering. He emphasizes the importance of not making investment decisions based on fear or emotion, as media narratives can create misleading biases and traps.
* Bitcoin Hash Rate Drop Explained: There was a 40% drop in Bitcoin's hash rate yesterday, which caused some concern among observers. The most probable explanation for this is a power shortage at a major mining pool called Squire mining, which temporarily halted their operations.
* Miners' Power Priority: Miners typically have the lowest priority for electricity supply. This means if there's any issue with the power grid or a surprise outage, mining operations are usually the first to be curtailed, leading to a temporary drop in hash rate. He notes that the hash rate is already showing signs of recovery.
Hash Rate as a Trailing Indicator: He clarifies that Bitcoin's hash rate is a trailing* indicator, meaning it follows market movements rather than leading them. Miners are primarily business operators who first evaluate Bitcoin's price and profitability before deciding to mine. They react to the market, calculating their profit margins, rather than dictating market trends.

Transcript

Hey, what's up everyone? Welcome back to Box Mining and I really want to do a very quick update for you guys on what's happening on the cryptocurrency space, especially since there was a huge dump yesterday. So, okay, let's start off this. The funny thing is that yesterday after I made the video about the big dump, watching it happen, quite a few OTC friends from Hong Kong, so they do over-the-counter trades, they have a lot of deals flow from China, they started asking me, yo, Michael, you got...

Hey, what's up everyone? Welcome back to Box Mining and I really want to do a very quick update for you guys on what's happening on the cryptocurrency space, especially since there was a huge dump yesterday. So, okay, let's start off this. The funny thing is that yesterday after I made the video about the big dump, watching it happen, quite a few OTC friends from Hong Kong, so they do over-the-counter trades, they have a lot of deals flow from China, they started asking me, yo, Michael, you got some USDT? Got some good rates for you. And almost never does that happen. Almost never do OTCs actually ask me if I have USDT. And the reason for that is that obviously there's a lot of traders in China buying up USDT, that trade volume is good, and they're looking for opportunities to buy in. And that's what this video is about because we had a dip and obviously everyone's asking, you know, what point should they enter? And I'm going to talk about what the sentiment for me personally is. Of course, everything covered here is not my personal opinion, not financial advice. If you have any comments, concerns, points that you're buying in at, leave a comment down below. I'd love to hear and discuss that with you. So let's start off with this. So logging back on to TradingView is like logging on to people speculating for discounts on Black Friday. It's hilarious. Okay, we're watching out 3K retreat, 5K, 7K, people talking about discounts on buying up Bitcoin for the cheap. It's, it's absolutely hilarious. Now, okay, let's, let's take a look at where these figures come from. And it really comes from the past. So looking back at the prices this year, the theory goes, of course, that previous resistances to Bitcoin coming up will become supports. Now is 8,200 to 8,400 that support range. Now it could go lower. So if you look back in July, you know, we did test 7,500, 7,700, and that could potentially be a new support for us possibly, or we can go even further back April. And that's not even far, that's not even far off, but April, we had prices of around $5,000. And this is where the 5,000 figure is coming from. It could drop that low. And of course, people might even look to February, where we're down to 3,700. So obviously a lot of people are, this is why people are buying that USET. They're like, okay, now the opportunity is coming. They're just waiting for that perfect timing to go in. And for me personally, all right, this is where I have to control my greed. I love discounts. All right. I'm a big person for discounts. Give me 20%. Give me 50%. Discount Bitcoin number one, right? Right now taking that kind of very fast trade is extremely difficult because it could swing both ways. Your risk is quite high. And I don't want to enter that. For me personally, I'm in the control zone. And this is what I was talking about. You know, it sucks. It's almost like a point where I always become like a dollar cost averaging preacher. Personally, for me, what I'm doing is right now, the hardest decision is decide how long to plan that DCA for how long to strategically buy over time, seeing if that we can hit those points and accumulate at those points. So for me right now, I'm targeting around six months. That's probably like the current line of thought. I still haven't finalized that plan yet. It might go for a year. But what I think is the flip side, the site going up, that momentum hasn't really kind of reached that point yet. The reason why I say this is based on sentiment. So just going to live like real conferences and events. I was at the ABBA Summit in Taiwan three months ago. Last month, there was the Invest Asia in Singapore. And what we've been seeing at those events is that people are the consistent players, the people who have been here for a long time, they're still here. But new players are not in yet. And what I'm waiting for, that's what I'm waiting for. I'm waiting for new funds, new groups of people to come in. And why offline space is a good indicator for that is because if there's anyone who any group or funds that want to invest millions or even billions of dollars, they're going to send representatives over to kind of scope the situation out. And that's when you kind of get these indicators coming in. So for me personally, I feel like that will take a little bit of a while to build up. And then for our overall community as well, to build into that positive state that we're seeing. And the funny thing, of course, is when you start reading articles on the news like this one, Bloomberg, Bitcoin's monster drop as indicators warning of more pain ahead, investors bailing out. It really goes to show you that mass media is geared towards fear. And I think this is the worst way to view events is to make decisions out of fear or emotion. And I think that's why, yet again, you know, it's important to realize that this is just media for the masses and not to fall into those traps where you build up a fake bias towards certain ideas. Lastly, this chart. So we got the Bitcoin hash rates. People were asking me about the surprise dip yesterday. We had a 40% drop in hash rate. A few people were scared of that. What we're talking about channel is that most likely reason is Squire mining. So one of the mining pools, they had a power shortage and that just kind of cut out their mining operations for a little bit. And that seems like a very good, the most likely explanation of what's going on. The reason being is that miners, they have the lowest priority power. So if there's any problems with a power plant, surprise outages, et cetera, they're the first ones to go out. Anyway, so that will lead to a drop in hash rate. And we're already seeing that this is recovering right now. And I really want to chime in on the fact that I think a lot of people regard mining as important. And for sure it is. But mining hash rate is probably the best trailing indicator because miners are business guys. They look at the price of Bitcoin first and then decide if it's viable to mine or not. So they don't really lead the market. They rather react to what's happening on the market, calculate the profit margins, et cetera. All right. So that's really it. I really. And so that's really it. I want to keep this episode short. I actually have a flight in a few hours. So guys, tell me this question. What opportunities are you looking at? Are you looking for dollar cost averaging or looking for a quick entry to catch the wave going up when it comes? And tell me down below. I'd love to have a discussion with you guys about that. Thank you guys so much for watching today's video. Make sure you're subscribed to this channel. And of course, click that little subscribe bell to be notified of new videos when they come out. See you tomorrow.