๐ Why I Love The Current Downtrend In The Price of Steem ๐
Hello everyone,
Anybody here depressed by the current price of steem at $0.95 USD? Aren't we all waiting for that great run up to $10 per steem?
Well, my perspective on all this has changed overtime and especially since I started learning the Wyckoff Method at Learncrypto.io. I learned to embrace the trend and play the game of the big operators.
I Lost a Lot of Money Not Knowing This
Back in July 2016, there was a giant run up from $0.35 to around $5 per steem. I was a millionaire in Canadian dollars for a few days. I saw all of those people around me powering down and putting their money into either bitcoin or steem dollars. All the way down, I didn't cash out...hoping the crypto gods would turn this downtrend that took almost 6 months to reverse. Foolish I was.
Looking back, with what I know now, it would have been self evident that I would divest so that I could buy back when the bottom of the downtrend showed up and by doing so, multiply my stakes on steem.
Ignorance IS NOT Bliss
-Jim Rohn
Big Operators Go On Campaigns
Just like anything, the distribution of steem tokens follow an 80/20 curve. There are large whales on steem as there are large whales on the exchanges. (They may not be the same persons)
What large operators do is have campaigns. Sometimes those campaigns can go for weeks and months. The end of that campaign is usually a major announcement made about a particular cryptocurrency.
Since they know a major announcement is coming and that it will be a great time to sell, they willingly go and put downward pressure on the price by spreading negative news and putting a lot of their tokens for sale on the market. (if you own 80% of the tokens on a given exchange, it's fairly easy to do)
As the market is flooded with supply and the price is tumbling down, the large operator(s) creates a panic in the market where people sell at low prices to cut their loses.
When the price has reach a satisfactory low and the major announcement is just around the corner. They buy back the tokens by reversing the trend of supply and demand. They start buying back everything they can at the lowest price possible while keeping an artificial sell wall. Once they bought all the tokens they wanted, they take away that sell wall and initiate that trend reversal.
At that time, the major announcement is out and a lot of attention is directed towards that cryptocurrency that went up by 20% or more. When the run up shows fatigue, it's time for the large operator(s) to sell their tokens to people who's just heard about it and decided to invest at the peak.
Rince and repeat.
Conclusion - Ignorance Is Not Bliss
All of this may seem unfair or dishonest...it may well be but that opinion won't change the game. You have two choices when it comes to this.
Either you decide that you don't want to spend the time learning all of this stuff and become a long term hodler. (nothing wrong with that and there is a lot of money long term is that strategy)
or
You decide to take a course and read books to learn more about how the game work and make the most of it.
PS: The last run up to $1.60 was in perfect sync with the release of the SMT whitepaper. (wink wink nudge nudge)
PS(2): Two major announcements are coming. The first is SteemFest (I bet the whole new front end with community will be released) and the second is the Smart Media Token testnet.
PS(3): The LearnCrypto.io link is a referral link. I believe this course is fantastic and I worth taking. Your course will be the same price whether or not you use my link.
I was surprised to see it dip down again so quickly after the SMT announcement. It felt a bit ridiculous - what was all that added value that took us to $1.50, just dust in the wind?
Thanks for your insights, it helps to make sense of the whole situation. Looking forward to a bright future on steem...
as the saying goes, buy on the rumor and sell on the news
This is a game of whales, they start and finish. We have the panic that we are selling, it's in the hands of whales, and we need to wait until they play enough.
OMG. Excellent info. I think I'm going to pick up some steem. The announcement at SteemFest will definitely take SteemIt to the top.
I think we see this sort of thing with just about all cryptocurrencies, lots of hype and excitement and not a lot of education or knowledge going on and people get FOMO that turns to FUD as soon as the price starts to waver from the highs. Not that I have an amazing knowledge base, but I try and do some research before jumping all the way into something!
Not necessarily a bad thing in and of itself, hopefully as more people get involved more people gain knowledge and we eventually start to see a little less volatility/FUD, but that is likely several if not many years away!
@cryptoctopus,
You are absolutely correct and it's a good advice for the people who is new to this market field! Whales or top investors hold the market moves. Therefore, we should not to be panic! You are a whale also! So most important thing is you decided to help others! Respect!
Cheers~
Every penny i earn here, i buy steem under 1$. I know that those are easy money..
Steem stays steady around $1 - $1,30 for a few month's. Nothing to worry about!
Excellent post. Not only well-written, but also very informative about a subject relevant to most of us.
While I am probably not quite as cynical about any possible manipulations by whales, it is well known that such manipulations happen in most markets. Therefore, if it is happening with Steem, I would not be surprised.
Regardless, it does present a great buying opportunity. I've been watching the price for days, hoping to buy some Steem Power. Actually, I'll probably buy soon. Given the current price, it's a steal. If it drops another 10 or 20 cents, I might regret (momentarily) not waiting for that drop. But if it goes up 20 or 50 cents before I buy, I'll have major, long-term regrets.
As the saying starts, "Buy low ...."
(note: I bought my first bitcoin when it was dropping from the $200 level. I bought, it kept dropping. It dropped to about $60, but I did not buy any more. To this day, I regret not buying then. I could have increased my bitcoin holdings 3-fold. I won't make the same mistake with Steem or any other crypto.)
let whales to play & hodl. steem is ready to fly to moon. useful article @cryptoctopus
@resteemia
lol this gif is hilarious!
Great article.