Bitcoin drops -12%, XRP -25% and Litecoin -23%, DogeDay420 Trending
The parabolic rises of the past week finally came to a halt this Sunday when the markets stared back at us with a double digit drop in all major coins.
The only coin in the green is Dogecoin, which is up almost 2%.
Is this the start of a real crypto crash or just some profit taking days. And more importantly, who will be buying the dip?
As the retail trader on WallStreetBets would say, you have paper hands if you are letting go now, and it’s better to have diamond hands and to HODL, but of course after a week that saw Coinbase list an IPO and Dogecoin grow by hundreds of percentage points, it was clear that profit taking would eventually start.
U.S. TREASURY TO CHARGE SEVERAL FINANCIAL INSTITUTIONS FOR MONEY LAUNDERING USING CRYPTOCURRENCIES -SOURCES— FXHedge (@Fxhedgers) April 18, 2021
It started after a rumor was launched on social media that the:
Treasury to charge several financial institutions for money laundering using cryptocurrencies.
As we have warned this week, it was always just a matter of time before a turn of events would set in. The market has been going into one direction only and thus it is normal that at some point traders want to take profits.
Two major questions should be asked at this point. Is this the start of a crypto crash at the top or just a small correction and secondly, and most importantly, are you gonna wait on the sideline or BTFD (buy the f**king dip)?
As to Dogecoin, the mood soured overnight when people noticed that the parabolic ascent had stopped and those that had gotten in at the top (44 cents) would have to wait a long time to recuperate their losses (if ever).
Cardano founder Charles Hoskinson released a warning video about Doge spikes and said that ultimately the coin had to come down from this point. Although it could one day eventually still go higher, it would have been impossible for Dogecoin to keep climbing as it was he explained.
Other pundits noticed that DOGE at a certain point during Friday’s rally was worth more than the car company Ford, which indeed is a bit exaggerated.
By now, social media is calling for a new climb of the coin on 20 April, calling it DogeDay420 and sponsored by Slim Jim. If that happens, already we wonder what the SEC will say about it.