Anyone Know Whats Causing This Crash

Thank you BK!! Pub members, here’s some graphical info.

BTW, if you have your crypto stored at an exchange, put very high sell orders (like $20K) on your crypto to get it out of the hands of the shorts.

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yes I wouldnt be surprised if we see another 700-900 usd spike in 1 hr on BTC to get many shorters shorted out, we have seen it happened before, I do not see why it wouldn’t happen again, the grimmer the market looks, the big players will get their hands fuller.

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I posted something yesterday on the BTC chart having three descending triangles. This is normally bearish. So I think we are just continuing the down drend.

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I love this chart! It tells you so much.

There has recently been price support in the high $5’s and low $6’s (see the red flat line on the chart above).

We may (repeat MAY) be near a bottom right now judging by the pretty high number of short contracts out there. It’s presently about 33,000 short contracts versus about 38,000 short contracts that were outstanding in April which was also a relative price bottoming period.

My bet is a “w” shaped bounce at the bottom that’s probably a few days to a week away. The volume of buy/ sell trades is still too high.

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“Waxing and waning is all part of riding a rocket to the moon.” - @ cburniske

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… If you were lucky enough to get it at the bottom which 99% of us were not.

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nvm previous post edited already :rofl:

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Keep on with the buying! DCA like a robot. Your future self will thank you.

Stay calm and hodl on folks. See you at the moon.

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Reason: sentiments of capitulation, place in the market cycle. Altcoin opportunity imo.

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Yeh how’s your ICX team holding up bro?

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ICOs liquidating funds

Some have posited that blockchain and cryptocurrency projects might be converting their ether reserves into fiat currencies to meet financial obligations. At face value, this appears plausible, as startups incur many expenses during their growth phase. If a collection of companies liquidated the cryptocurrencies—mostly ether—that they raised in ICOs at the same time, they could exert downward pressure on prices.

Considering that some startups raised hundreds of millions of dollars worth of crypto, a single company could be responsible for a dip—though probably not one of this depth or duration. While it would be easy to blame large, naive actors, many of these teams are acutely aware of their outsize influence on the markets and they’ve specifically designed conversion strategies to limit their impact on prices. Instead of flooding exchanges with sell orders, they plan ahead, plotting small liquidations spread out over several weeks, if not months.

The ICO liquidation theory also fails to answer a basic question: Why now? We’re several months past tax season and some of the largest ICOs (like Tezos) have been converting their assets for quite a while.

Negative feedback loop

It’s possible that the price decline reflects a negative feedback loop, a combination of economics and psychology. As crypto investors sell their holdings, they see that prices are falling. This could spook them into selling even more. This is somewhat like a bank run, except investors lose faith in the value of cryptocurrencies rather than the viability of a financial institution.

In October last year, Timothy Lee at Ars Technica suggested that a positive feedback loop might be what inflated the cryptocurrency bubble in the first place. We may now be seeing the opposite force in action.

General malaise

Cryptocurrency investors (and especially ethereum backers) may be disappointed by the low usage of decentralized applications (dapps) like IDEX, Bancor, and CryptoKitties. These apps run on crypto tokens, and thus generate demand for the assets.

But when investors visit a cryptocurrency exchange, they aren’t presented with information about the daily active users on various dapps. They’re generally only presented with the price of an asset and a chart of its history. Crypto trading doesn’t usually incorporate nuanced cash flow analysis or acknowledge anything beyond the price of a token. Ultimately, these digital assets are worth whatever somebody is willing to pay for them, regardless of whether they have uses beyond speculation. These days, buyers aren’t willing to pay as much for cryptocurrencies as they were not that long ago.

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Which is why everyone into crypto should ALWAYS have some BTC in their portfolio.

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Without a doubt. Why wouldn’t you?

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Dude…some people dont.
And i have absolutely no idea why not. None at all.

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I think people are thinking they will get in on an ICO or buy an alt at a really low price and strike it rich. Similar to all the people who went West to prospect for gold,the ones who really made the big bucks were the people who sold the jeans ( Levi-Strauss) to the prospectors and the guys who sold the picks and shovels.

I read this yesterday

Rather than advising someone to sell shovels and pick axes during a gold rush, better advice from the San Francisco Gold Rush might be to import shovels from abroad. Or speculate in real estate. Or just work hard painting houses. Anything but mining for gold.

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Fascinating tho…im not sure how to interpret that.

If not ICO…they traditional bitcoin?

Or services that teach people how to use crypto?

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Things like exchanges would be a good examples.

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