Charts spoke and coins smoke into the green.
Apparently, it is exactly how people see it would be. The consensus knowledge of every Redditors who ever put money into crypto. The tax season, especially in good old USA, is contributing to the dive of crypto in the last 2 months.
Threats from Big Daddy (not Brother because Brother doesn't pay child support) is putting heavy pressure on the investors, particularly individual ones. Having to keep track of thousands or more lines of transaction and with exact timestamp price is making people mass-selling cryptos in fear of tax agency going after them. When coupled with bans from China and Korea, exchange hack from Japan, and warnings from governments, we get a gigantic swing in the negative deep into $350 region. It nearly touches $360 in GDAX and then promptly bounces back up.
I'm obviously stupid and therefore I'd like to give my opinion. I think the down trend is long overdue since gain last year was too much to sustain, it must fall down to a more reasonable price and solidify. However, before it even has the chance to stabilize, bad news keep coming out one after the other and spook newbies who went into it without due diligence. The initial shakeouts were mostly aimed at weak hands but later SEC warnings and further pressure from central government toward tax season were gearing toward whales of cryptos. You get an exodus of minnows to eat up the whale dumping and then the whales themselves get targeted.
It is as if cryptos are run entirely based on emotions on news, very reactive and not so much proactive. Having a plan and an iron will is probably enough for survival. With additional knowledge, there is still money to be made from here. The stake is getting higher and the risk as well.
We have multiple fake-outs where the price rises up rapidly only to get dumped roughly at 6% gain. However, the recent 4/12/18 and 4/13/18 have very steep ascent with almost no drop as more people step in to push price higher. I wouldn't say we are out of the mud yet, but tax season will be over in 2 days. Gauging potential buy pressure in the next 2 days can give a better picture of how far the reversal will fly up.
2018 summer could be just as enticing and devastating as 2017 summer. Everyone needs to do their own research and set their acceptable gain or loss but year end planning should probably start now. There's always money to be made in uncertain times.
