beginingCryptocurrenciesBitcoinBitcoin Price Dropped, Now What!?

    Bitcoin Price Dropped, Now What!?

    It's been a tough week in the Bitcoin and cryptocurrency market. Dropped all the way to $42,000 before bouncing back up slightly. This caused many to panic, declaring that the bull market was over, that everyone should pack it in and come back in 2-3 years for the next bull run. What should one actually do? Yes, Bitcoin went down; let's talk about it. 

    You probably know by now that I'm as bullish as one can be on Bitcoin. I always find the positive in any bitcoin situation; be it up or down. And that helped me throughout the summer when bitcoin dropped to $29000. That being said, the last week was still a blow to me and many others. Perhaps the reason it shocked people even more than the summer traffic is that this time it happened in December. This was the month that was supposed to deliver Bitcoin to the promised land. There were all kinds of EOY price predictions that ranged well over $100,000. As that dream now looks much more challenging, this has led many to declare this the start of a bear market.  

    And yet, I still disagree. I am still of the opinion that we are still in a bull market, but this was a big problem that will take some time to recover from. As I mentioned above, people were aiming for a Bitcoin price of over $100,000 and were putting in leveraged debt based on that belief. The whales could see this overzealousness and drove the price down. Whales also want to maximize their own profits. By eliminating people trading with leverage, being able to buy their coins at a cheap price only helps maximize their profits. The Whalers are playing the long game. It doesn't matter to them if the price of bitcoin goes to the moon this month, 3 months later or even a few years later. They are now quite comfortable and extremely patient. People trading with leverage are the complete opposite. They often try to get rich quick and do it all in one deal. So the whales liquidated these merchants. While there's still a chance Bitcoin can still do impressive things in December, it's likely that the bullish move we've all been wanting will likely be delayed by a month or more. But I'm of the opinion that it will happen anyway.


    I sincerely hope you are not one of the people who got liquidated. I had been liquidated once before and it was a feeling I never wanted to experience again. I also hope you had the personal willpower to hold on to your coins and not sell them. When prices drop quickly, you'd be surprised how quickly your mindset can change. You will start to question your portfolio and why you started investing in these risky assets in the first place. Then thoughts will start to pop into your head. Or your mind will tell you to sell and get your money while you still can. Or it might convince you to try getting fancy. I sell while the price drops, only to return later. The later is a bad idea. At least for me, I have terrible luck trying to time the market. I have tried to trade these dumps in the past only to have the price spike after selling. Which meant I couldn't buy the same amount of coins I had moments ago due to the rapid rise in price. You never want to be the guy who buys high and sells low.

    So once you decide you want to stay invested in the market; which leaves you with two options. Will you be a passive participant or an active one?  


    Let's first talk about being a passive participant. It basically means to take a step back or take a break. This market can be extremely stressful and emotional. After these days of huge price drops, there is no shame in turning off your computer, deleting crypto apps from your iPhone and just relaxing. This break can be a few days, a week, a month or as long as you need. This will be a great opportunity to refocus and remember the more important things in life. Then, when you're ready, the game begins.

    Or you can choose a more active approach. While the price drop was a big blow to me, seeing Bitcoin and other cryptocurrencies drop 15%-50% made me feel like a little kid in a candy store. My opinion is this. Most of us here are true believers in where we think this market is headed. Just a few weeks ago, if someone would present you with an opportunity to buy Bitcoin at $42,000 or ETH below $4,000, Solana user $190 and Polkadot at $25. These would be opportunities you would want to take advantage of. I've been taking advantage of these price drops as much as I can. My belief in Bitcoin is so strong that I never see the day when I will stop buying it. That means if it's $1 million or just $1, I'd buy at both prices. Although there is a risk in buying during these huge price drops. It can be like trying to catch a knife where the price keeps falling further and further. But those same kinds of drops helped me build the portfolio I have today. March 2020 and summer 2021 were some of the most prosperous times for my bitcoin accumulation. Had we not gone through these difficult times, my financial fate would have been very different. These are the moments when wallets are made.

    Although this is not financial advice. But I know what I did. Bitcoin price is still $47-48k; just a few months ago we were at $28 000. Bitcoin is doing well.

    What about you? Were you active or passive during this immersion? Or maybe you sold? 

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