The main motivation for creating this blog was to inform and warn people about investing into bitcoin or at least to explain why this financial instrument could potentially be a bad decision or even crash. What is happening today on the market. This means to be in general and we are not going to do any analysis when to buy or sell. On the other hand it is good to warn you right now, not because market is going down but more because how. I see do important points what are happening now:
- The Ban from Korea – This is quite negative fundamental information and after that market went down about 20%. If you were on the stock market before you know that only one thing you can say about it is “market is reacting on bad news by going down”. This usually means that prices are not at the bottom. At the bottom it works exactly opposite – market does not react on bad news at all.
- Do not try to catch a falling knife – This is a very simple, this is a sentece which refering current pattern on the bitcoin market. When this happen on a market and you are holding a financial instrument you are in a bad position with literally no advice. If you are not on the market yet then do not care about possible earning money, do not care about anything, just simply do not go to the market neither long nor short.