Emotional Roller Coaster or the buying/selling dilemma

3d
LeoFinance
2 Min Read
354 words

Does this graph below sound familiar to you?

image.png
(Source: https://www.prismfc.com/behavioral-finance)

To me yes, and much since I have spent two entire cycles in this market feeling similar emotions...

I have to say that it is being one of the longest periods of "Extreme Fear" since the indicator was created.

image.png
(Source: https://alternative.me/crypto/fear-and-greed-index/)

Specifically, we are below “20” since May 7th and it does not look like investor sentiment is going to improve any time soon, in fact other indicators related to the volume of BTC entering exchanges have changed the trend since that bottomed just a few days ago.

And also, currently, the number of BTC available on exchanges is increasing at the rate of about 21,700 BTC per day.

image.png

Quite possibly, this flow to exchanges comes from miners going bankrupt or selling their stake to cover insufferable expenses at the current price level.
However, what remains to be seen is whether this flow of BTC to the exchanges is being covered in a sustainable way by the thousands of Bitcoiners like me who have been doing DCA for some time now or whether we are going to see another abrupt drop in the near future.
No, gentlemen, no... I don't think we've hit rock bottom, the signs are still very bad, although others would say it's a great time to buy since we might think that crypto blood has hit the streets after the LUNA debacle and the possible liquidations of other big projects that were too good to be true.
As always, there is one and only solution in my opinion. The best thing in these cases is to go "shopping regularly" or what others call, DCA... so we won't have the face of an asshole in the event that this was actually the Bottom.

By the way, I think it's time to do it also with POLKADOT and, why not, also with RUNE... and that's what I'm doing, avoiding the likelihood of being out from the possible opportunity...
As always, this is not financial advice and blah blah blah...please, do your own mental masturbations.

@toofasteddie

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Great insights as always and nice graph as!
I have doubled my DCAs (20->40$). Only ETH and BTC for now. Also I use a Centralized app so this is not a real hard buy and self custody. But my long term funds are already in the “system” and being deployed daily 😉.

I was thinking to either increase my HIVE or HBD (for the yield). But I think we might go lower until it makes sense. Any thoughts?

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Not necessarily but, yes HIVE can go down even lower but I find it very resilient, don't you think so?
BTW, which app are you using for regularly DCA, Relai?

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I use Revolut for my lifestyle (expat + vacations + no monthly fees). And I use their DCA there. Super easy. The issue is that fees are “high” for crypto people (1-1.5%). But for such small amounts I have accepted to have 1-1.5% fees for the peace of mind and flexibility.

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3d (edited)

Speaking in terms of BTC, I've heard the statement 'buy the dip' more times than I can remember within the past few weeks. Though a lot see it as buying opportunity, Scepticism has been my first name as I wouldn't like to make mistakes I'd regret in the long run.

As for HP, I'm considering stacking more of that as a long term investment. While keeping some HBD at hand in case of emergencies so I can swap them to fiat in times of need.

The only problem is... what if Hive follows the roller coaster and dips down and probably lower than expected, wouldn't that mean trouble for investors in the blockchain?

I realise we're never sure of anything in the crypto space.

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Present times are for building (staking), no matter if the price falls further

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Yeah, I kind of agree with that. present times are for building but... sometimes when you're just growing and you find yourself a bit new in the crypto space, you'd be in doubts regarding certain things. Such is my case.

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Lol this is a cool graph and actually reflects the sentiments on Bitcoin for real, the 11th got one is quite funny, had enough, so sell out and stay out for good to avoid volatility drama.

At the rate of which BTC is hitting exchanges it does give a reason why we should be expecting further dip

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No one knows if it will go lower that's why buying small portions regularly is a good approach

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Thanks

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I don't know much about this condition but I know one thing that we should not invest under such conditions as the market keeps going down.. already people have lost their life savings

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yes but just keep in mind not to buy at the top like most have done

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Yes just play somewhere in the middle values.. avoid top and bottom.. there is more risk in that

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0

Lol that picture seems accurate.

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