Bitcoin price drop continues as China bans more mining – and we happily buy the dip
Bitcoin price is looking rather undervalued today, as price returns to lows approaching the fabled $30k mark. This is a psychological and perhaps technical floor for this mini bear market that bitcoin has entered. When does a mini bear market become a major bear market? When price closes below $30k.
China FUD may well be part of the fundamental reason for the current massive correction. And that FUD is becoming real as the CCP continues to push its provinces to ban the selling of electricity to bitcoin mining farms. The CCP literally plans to root out and end all mining operations, even though they are running on cheap hydroelectric power. The anti-bitcoin stance of China’s government is more real than ever this time around.
Not only are provinces systematically shutting down power supply to bitcoin mining farms but the central bank PBOC is now requiring several smaller banks to basically close the accounts held by bitcoin miners. It’s a multi-pronged attack by the Chinese government to smash bitcoin mining permanently. This is way more than mere China FUD.
But I am an eternal optimist and the fantastic good news is that miners will simply relocate to other countries and thus take the potential control away from the CCP. The hash rate has dropped and may continue to drop temporarily as miners relocate, but it will definitely make a stronger case for a decentralized bitcoin. And that’s bullish.
Furthermore right now is a fantastic opportunity to get some cheap bitcoin guys. Along with that, the altcoins are all on a massive sale right now. We can see 10-20% discounts on all your favorite cryptocurrencies. This is a dream opportunity, as we load up for the next leg of the bull market for this cycle. Buy when there’s blood in the streets, as the saying goes. And it’s bloody red today guys.
I’m waiting on the sidelines with the view that bitcoin price will dip slightly further, down to that fabled $30k floor, and then I will enter a long position or simply buy that dip, stack up on more sats and ride the bull run to the blow-off top at the end of this year. I could be wrong so don’t take this as investment advice, just my opinion. Who can say if the top is $100k or $200k? Or when exactly to sell?
Similarly no one can say where this bear market correction will bottom out. It may be at the imminent $30k mark or we may even see a wick down to an even more fabled $20k of the last ATH (all time high). If I can keep a cool head, I will have saved some fiat for that much-desired entry point in bitcoin price volatility. It’s a long shot in more ways than one. And that’s part of the fun. You can’t get too serious about money or profits or bitcoin. It will age you as you stress too much. Rather play it cool and discover the other treasures of life, like family, friends, health and nature.
If you’re out of ammo and fiat is already invested then not to worry. Many investors may be in the red or underwater as cryptocurrency prices correct further by the day, but these are times to hodl and leave the chart addiction for another time, when the bull market resumes. Rather go outside and enjoy the beautiful weather. Relish the outdoors with all the healthy and invigorating oxygen available for free, go on holiday, spend time on those other secondary skills like art, meditation or whatever it may be.
The markets will be there when you return and the bull run will resume after this brief correction. It may take a few more months even, so there’s no rush in the trading business. Now is the time to balance not only the portfolio but life in general by taking more time to live in the present and relish the moment. Let bitcoin do the work of heavy lifting when it comes to price. Let your money work for you while you relax and let go of any stress. That’s my strategy and formula and it works very nicely, bringing me loads of time and good health as well as a deeper philosophical and perhaps stoic outlook. This pays off in the long term, just like investing in bitcoin does. Attitude is everything, along with perception of reality. All the rest is detail and frills.
Ref: https://www.zerohedge.com/crypto/bitcoin-ether-tumble-chinas-crypto-crackdown-continues (images pixabay)
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