DO NOT SELL - 15.01 dip in price explained for beginners

[Loimu]

For anyone who is invested in bitcoin thinking long term: DO NOT SELL. This is serious, good willing advice from holder to another or for anyone whose hands are trembling fearing they will miss out on something. New to bitcoin and don't really understand what is happening? Do not sell. I repeat; do not sell. Now is rather time to buy more coins if you can afford it and have some savings lying around. The price is now at the time of me writing this $394/1BTC. It's highly undervalued right now and that's because of the panic sellers like you could be. Don't be that guy, as that is when you are really going to miss out. Relax a bit and let me explain you where the dip comes from and what are my views on the situation.

Price had it's peak at November which was at $504, after which it corrected to around $460 in the beginning of December. That held until very recently, the 7-day high being at $456. So no major movement has really happened in about one and a half months. Now today's dip is explained because one of bitcoins developers, Mike Hearn, announced that he will be no longer working with bitcoin and sees it as a failed project. You can read his blog post about it from here.

With the recent block size debate (browse around the forums for more information if you are unaware of it) Mike Hearn was working with Bitcoin XT, which was fork promoting 8MB block size limit. Ultimately it didn't get the support they wanted and you could say their project, the Bitcoin XT, failed. It failed because democratically we, the bitcoin users, didn't agree with his solution on the block size issue and didn't want Bitcoin XT to happen. But that is the only thing which failed, not bitcoin itself. He is just a quitter and angry because bitcoin didn't go the way he wanted it to go.

After Mike made this announcement there has been major movement in Chinese bitcoin markets which are then fueled ragingly with all kind of stressed blown-out traders and beginner panic sellers who are selling all their stock in the fear of losing out in fiat money. If you ever intended to invest in bitcoin more in the long-term side then just relax, get some popcorn and just enjoy the ride. Bitcoin is not dead by any standards. The price will correct itself up again soon enough when the biggest wave of panic sellers is over, halving is still coming in the summer and there are some good solutions already for the block size issue. I personally support Bitcoin Classic with it's 2MB solution.

Don't want to believe? No hard feelings. Go and sell now but don't say someone didn't warn you. You should only sell if you are skilled day-trader or gambler and you believe or 'know' that the prize will go even further down and are willing to take the risk that it doesn't.

[maokoto]

Great explanation for beginners, and I do greatly agree with you. Thank you for your time on doing this for others to read, wish I have read it sooner (I read the long post by Mike Hearn and some news about chinese miners and came to a similar conclusion).

I am buying, and think BTC will be soon above 420$ again.

[CuntChocula]

TL;DR: Invested more than I can afford to lose, now post wall of text because suicide is the coward's way out.

[MaritiJames3]

Thank you for this explanation, I will link some people who are actually panicking right now.

If you are panicking just hold, there's honestly no need to panic, this is how bitcoin works

With it's ups and downs.

[JasonXG]

This makes me feel much better. I do believe strongly in bitcoin though its just in my personality to panic , I really should chill. *phew* Good post.

[manis]

Price dropped to $360.
Seems like a good opportunity for those who missed out on cheap coins earlier. 

[talks_cheep]

Except, $504 is the new $1200.

We're entering a bear market, this is not just a small correction, no, it's a major turnaround. The last bear market lasted about 2 years, actually we just got out of it. Hopefully, it will be a short period of bear market.

[mixan]

Price has dropped to $359 today, why not sell? I will sell if I feel if the pressure to too much to bear to hold these worthless coins that I bought for $100 more 2 months ago 

[The Sceptical Chymist]

Yeah, everyone else is doing the selling for us, that's why the price is in the crapper.  It takes some nuts to buy when everyone else is selling, but that's what people should be doing.  In my opinion.

[jjacob]

Price has dropped to $359 today, why not sell? I will sell if I feel if the pressure to too much to bear to hold these worthless coins that I bought for $100 more 2 months ago 

If you are okay with taking such a big loss, go ahead and do it.
If you can stomach some more volatility, why not wait till the block reward halving takes place?

[BitcoinNewsMagazine]

For anyone who is invested in bitcoin thinking long term: DO NOT SELL. This is serious, good willing advice from holder to another or for anyone whose hands are trembling fearing they will miss out on something. New to bitcoin and don't really understand what is happening? Do not sell. I repeat; do not sell. Now is rather time to buy more coins if you can afford it and have some savings lying around. The price is now at the time of me writing this $394/1BTC. It's highly undervalued right now and that's because of the panic sellers like you could be. Don't be that guy, as that is when you are really going to miss out. Relax a bit and let me explain you where the dip comes from and what are my views on the situation.

Price had it's peak at November which was at $504, after which it corrected to around $460 in the beginning of December. That held until very recently, the 7-day high being at $456. So no major movement has really happened in about one and a half months. Now today's dip is explained because one of bitcoins developers, Mike Hearn, announced that he will be no longer working with bitcoin and sees it as a failed project. You can read his blog post about it from here.

With the recent block size debate (browse around the forums for more information if you are unaware of it) Mike Hearn was working with Bitcoin XT, which was fork promoting 8MB block size limit. Ultimately it didn't get the support they wanted and you could say their project, the Bitcoin XT, failed. It failed because democratically we, the bitcoin users, didn't agree with his solution on the block size issue and didn't want Bitcoin XT to happen. But that is the only thing which failed, not bitcoin itself. He is just a quitter and angry because bitcoin didn't go the way he wanted it to go.

After Mike made this announcement there has been major movement in Chinese bitcoin markets which are then fueled ragingly with all kind of stressed blown-out traders and beginner panic sellers who are selling all their stock in the fear of losing out in fiat money. If you ever intended to invest in bitcoin more in the long-term side then just relax, get some popcorn and just enjoy the ride. Bitcoin is not dead by any standards. The price will correct itself up again soon enough when the biggest wave of panic sellers is over, halving is still coming in the summer and there are some good solutions already for the block size issue. I personally support Bitcoin Classic with it's 2MB solution.

Don't want to believe? No hard feelings. Go and sell now but don't say someone didn't warn you. You should only sell if you are skilled day-trader or gambler and you believe or 'know' that the prize will go even further down and are willing to take the risk that it doesn't.

Good writing and solid advice thanks for this.

[Trayber]

I sold off a good chunk of my btc two days ago at $440. Good timing on my part. I kept a little bit and I'll likely buy more when the price gets close to bottoming out because there is always been a yo-yo effect when it reaches a false bottom. I feel bad for those that keep thinking its going to rebound right back up. Not away it wont. It's going to continue to keep tumbling into the lower 300's

[manis]

I sold off a good chunk of my btc two days ago at $440. Good timing on my part. I kept a little bit and I'll likely buy more when the price gets close to bottoming out because there is always been a yo-yo effect when it reaches a false bottom. I feel bad for those that keep thinking its going to rebound right back up. Not away it wont. It's going to continue to keep tumbling into the lower 300's

Selling at $440 was good timing, but how are you going to know when you are close to the bottom?
If you wait too long, you might see a rebound and miss out on cheap coins.

[zby]

"Price had it's peak at November which was at $504, after which it corrected to around $460 in the beginning of December. That held until very recently, the 7-day high being at $456."

Oh - you only forgot that it corrected to 300.38 between 504 and 460 - but yeah beside that you are 100% correct.

[QuintLeo]

If you can afford to hold 'till July or so, it's a good time to hold onto your mined coin.
I think it's a bit early to start buying coin though - I STILL think we'll see sub-300 for at least a short while, as the only reason we ever had the current bubble in the first place was a big rush of Chinese investors after BTCC (and the other Chinese exchanges) announced that they can take Fiat payments again back in November.


 Bubble was nice for us miners though - I managed to RoI one of my S5s and looks like I'll at least be close on the other 4 and the SP20. 8-)

[erikalui]

Thanks for motivating us. It is really a hard time for all of us as most of the users here most have bought coins for a higher price and some cannot afford their loses. It's actually a time when all should be encourages and I'm waiting for one positive news about bitcoin prices. Halving is a long wait but now if the prices fall below $300, not many of us would have any hope left.

[mixan]

Price has dropped to $359 today, why not sell? I will sell if I feel if the pressure to too much to bear to hold these worthless coins that I bought for $100 more 2 months ago  

If you are okay with taking such a big loss, go ahead and do it.
If you can stomach some more volatility, why not wait till the block reward halving takes place?

Who can guarantee this from happening? There is not some golden rule that this process will reap the reward of a huge spike. As you mentioned it is volatile. Meaning it can go either up or down, in a drastic fashion.

Thanks for motivating us. It is really a hard time for all of us as most of the users here most have bought coins for a higher price and some cannot afford their loses. It's actually a time when all should be encourages and I'm waiting for one positive news about bitcoin prices. Halving is a long wait but now if the prices fall below $300, not many of us would have any hope left.

At this time I don't have much hope for it right now. Hearn really fudded our expectations of a good year for 2016 being the year of    BTC  

[MaritiJames3]

Thanks for motivating us. It is really a hard time for all of us as most of the users here most have bought coins for a higher price and some cannot afford their loses. It's actually a time when all should be encourages and I'm waiting for one positive news about bitcoin prices. Halving is a long wait but now if the prices fall below $300, not many of us would have any hope left.

Yeah i was holding for the halving but it's a long time indeed.

7 months of a volatile price is bad for my heart. I hope one day the price will be come more stable.

[interbtc]

Why not sell ? Let them sell everything !

The only thing i am really afraid off , is that price will go up and i wont be able to finish my goal of owning 21 bitcoins.
This dip is the best thing that happened to me lately by far !