It Depends How You Look At It
Yesterday I did a post about the Bitcoin Fear and Greed Index, which was showing Extreme Fear. Today the index is showing Fear, which is not as bad, or should I say a little bit better than Extreme Fear. I mentioned that there will be all kinds of explanations to why the market crashes, as that's how this world works.
The main culprit is usually the one and only, or should I say, always the same person, none other than Elon Musk. If you look at any social media platform, his name is the one always mentioned and all that's happening in the crypto world, good and/or bad is attributed to him. Slowly he is becoming the new God and everything he says has the power to move the masses, because millions are ready to jump when he says something.
1d BTC/USDT chart on Binance
Charts never lie, you just have to use them correctly. Look at the chart above maybe you can see some similarities between the past and where we're now. There's a big green candle on February 9 and that level has never been tested. This pullback was expected.
There have been two scenarios, one of which that BTC comes down the $41K - $42K level and here we are, at $42k at the time of writing and it could go lower.
I have the habit of not trusting anyone blindly, no matter who they are or what they are saying. Actions have consequences and when things go wrong, I'd rather blame myself for not being good enough, then for listening to someone else instead of judging for myself. This is why I'm learning charting and all that is needed to be able to make my own decisions. This comes at a cost as it's not easy and hours and hours are needed in order to get to a certain level, so you can make the right decisions.
Those who are shaking the market know that quite many crypto holders act on what they can read on social media platforms and can be influenced (or manipulated) easily by celebrities, wealthy people. That's what they are counting on and so far it's working perfectly. FUD + FOMO = SUCCESS for the wealthy.
I don't have any statistics about how many are joining the crypto world, but the number must be impressive. When the economy is collapsing or it's already collapsed, crypto may be the only way our of poverty or the only way to survive. When you're investing your savings, or the last penny you have, hoping to make enough to put food on the table, losing is not an option.
There are no shortcuts here, learning how crypto works can't be done overnight. Listening to smart people has a price not everyone can afford to pay. When you buy a coin because you see it's mooning and you know Elon has mentioned it ... you may think twice. You may get the right coin at the wrong time or the wrong coin the wrong time for the wrong reasons.
The hardest thing may be to watch your position stay where you put it and the price go up, knowing you missed the train. It may hurt but there's always another opportunity.
As far as Elon Musk is concerned, unless there's something about his space program and Tesla, I don't want to hear it. You can base your decisions on what he says about different coins, just remember, you're playing with your own money and you take the loss if something goes wrong. He is most likely buying the dip now on Bitcoin and enjoying the power he has.
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