Bitcoin Billy woke up this morning and saw his shadow:
and scrambled down to $7,700 before recovering his nerve and climbing back up to the cold, cold surface of $8,500:
Billy confirms what became apparent last month: it's going to be a long, hard winter for cryptocurrency.
That there chart shows a real bear market: even at $8,600, Bitcoin's already down more than 55% from its high. In any other market, that's enough for a severe bear mauling. In the crypto market, it's reminiscent of the awful winter of 2014:
Yep, it looks an awful lot like we're going to be stuck in the cold snow for a long time.
2014 was an awful year, and 2015 was only warm by comparison. I got into this sphere in February of '14: theses tips are derived from my experience and misadventures. Two are derived from after-the-fact "what I should have done."
We've all been ecstatic about the wonderful Year Of Crypto. But as fate would have it, what went up is going down. If you missed your chance to cash out, stop letting it gnaw on you. The wonderful summer's over; we just have to wait out the winter for the next one.
The most important reason you should hibernate is:
Just as Bitcoin was starting to plunge in '14, the Great Altcoin Boom hit its height. My, it was a marvelous trainwreck! Lots of punters, my gullible self included, chasing new offerings in the frantic hope that we would catch the next Bitcoin.
In fact, we were hoping to catch up to the folks who had bought Bitcoin in '12 and early '13. We were letting the prior bull market gnaw on us! As a result, lots of us lost quite a bit: me included.
That gnawing made easy picking for scammers. They made out like proverbial bandits.
Now that winter is upon us again, it would be prudent of you to avoid ICOs entirely. Just make a note of the exciting ones, but hold off on buying them until you see how they thrive.
The rout has already taken place; the time to sell is gone. Now is the time for all good cryptonauts to HODL!
If you're ever disheartened by the price charts, remember that cryptocurrency is being mainstreamed and that the bear market does not change it. Cryptocurrency's mainstreaming is baked into the cake. Even the threat of stricter regulation is evidence that crypto has hit the big leagues.
The above point is very relevant with respect to STEEM. Even as its price falls, Steemit.com is breaking new eyeball and engagement records. It's only a matter of time before it becomes as popular as Medium.com.
True, bundling up is inconvenient. Nevertheless, doing so by paying down your fiat debt and accumulating fiat reserves is the way to keep yourself warm enough for the next spring.
In other words, don't buy back in until you see flatlining for a few months, like the first few months of 2015. Bear-market winters are notorious for "false springs" which turn back into cold after hooking you.
One upside to crypto winter is that waiting before buying dovetails well with paying down your debt and building up a fiat reserve.
Once the crypto market shakes off winter, it'll flatline for a long, frustrating time. You can get rid of the frustration by seeing flatline season as an opportunity to institute a dollar-cost averaging program. Instead of fretting about crypto not bouncing back, you'll see the flatlining as giving more opportunity to buy more at the end of the month.
If 2018 gets you down, just think of 2020! Think of a year when you can buy what you want with Bitcoin, when Steemit rivals Twitter, when lots of folks are looking at you, wondering how you had the courage and savvy to be an early adopter!
Now is the winter of our discontent, our frustration and our doubt. Now is the time of FUD, of desperation, even of despair. Now is the time to bend our heads, steel ourselves and resolve to see through to the coming spring.
All we have to do to get from here to there is endure. That's all we need to do. If your hope ever flags, there's lot of fellow cryptonauts to lean on!
Image credits: 1, 2 & 3 &4, 5, 6, 7, 8, 9, 10, 11, 12 , and the Steem Store.
