Lets do a recap of October and tell ourselves the brutal truth. October was a special kind of hell for crypto people which includes you and I. It was a month where most people were doing the universal prayer "please God, let me buy the bottom this time around" but got a resounding thwack for an answer from the universe's biggest foam mallet.
The meme above perfectly captured the experience of October. It's a graphical representation of all of us in the last four weeks. While the first guy in the image yelled proudly "I bought the dip!" Then the woman behind represents the subsequent but more brutal crash in the market, reminding the front guy that his dip was just a puddle on what's coming. Yeah, you bought the dip, then comes the dipper dip and next is the dip of the dip, and before you know it, you finally see yourself stuck in the dip of the dippity dip dip. Hilarious right?
And here is the strongest meat from October that we're still not able to digest up till now - Trump trade war with the Chinese and the insider trading whisper network.
The reason why the "dip of the dippity dip dip" felt like a tsunami is because it was never a natural market correction, but a more perfectly executed ambush.
The sequence of the events were so damning and equally hilarious in its audacity. What prompted a person to make massive shorts positions worth billions of dollars on Bitcoin and other assets just 48 hours before President Trump tweeted his threatening 100% tariffs on Chinese imports?
You don't tell me that's luck; the player certainly knew what was coming. He didn't just smell fear; he was the one who lit the fear gas. He pulled the trigger on his multi-billion-dollars shorts, while Donald Trump played out the script, providing the geopolitical justification for a market collapse leading to the largest single day liquidation in crypto history.
The massive flight to safety brought about by the tariff announcement added fire to the selling pressure that aided the liquidation of every promising long position placed by innocent poor traders who thought they had perfectly timed the market and bought the dip.
This is a lesson for everyone who trades crypto. Your market technical analysis means nothing in today's dynamic market where a single tweet can be enough to fuel an insider trading activity.
We shouldn't forget the Fed contribution to our collective October depression. While tariffs and insider trading pulled the bigger screen, Jerome Powell Fed rate cut announcements added layers of confusion, ensuring that people had a lot of data points to misinterpret.
What do all these mean for November?
The trauma of October suggests a few things we can use as guild for the new month.
Expect more dips in November; just accept it. There's nothing anyone can do about that, and no matter how perfect things may look like, there is will always be correction that could come when you least expect it.
Trade war talk is not likely to stop anytime soon. It has become the new fud, and a more reliable bear signal in recent times since Donald Trump came to power. So, keep an eye on the news especially those coming from the white house.
Safety is the best strategy to surviving in the current crypto space. If you cannot avoid trading all together, then Dollar Cost Average DCA is likely the safe buffer to depend on. You won't win by trying to time the market, but you will survive whatever dip the market plug into, even if it becomes the dippity dip dip.
As this moment, the key to survive in this crazy crypto space is to have a strong stomach, a sense of humor, and a commitment to love yourself, even if your portfolio looks like a rubbery scene.
Posted Using INLEO