Buying on the way down, see you all on the upswing in about a year. I bought after the MtGox crash in 2013 and can't wait to buy this bear market!
First thing when something like this happens you look at volume. Volume. Volume. Volume! Clearly its not here! It is not even half of that from the rally up 10 days ago (looking at ETH now). After such rally this tells you 2 things: 1) not enough people believed in ETH at $800 so they didnt line up from 500-800 with "buy", 2) since volume is medicore, this is not a panic selloff, but rather regular selloff that didnt capture enough support on its way down BECAUSE of #1.
In my PERSONAL opinion this is great opportunity to catch some ETH cheap. But how cheap at this point doesn't matter because all crypto has like what 60% volatility. This situation tells me ETH was immature to remain at $800 (long term, short term who knows that would be like looking into crystal ball but we been there before with bitcoin touching $1k and crushing badly before it was 15x that) but looking at last 30 years of trading, that doesn't mean you will buy it for $10 anytime soon.
As always don't make any decision based on my personal opinion as this is not professional financial advice.
EDIT: one more thing about #1. Since it was 150% in few days rally, I don't consider lack of strong buy between 500-800 as a sign ETH should be much cheaper. Its just that the whole rally up did not mature enough thru the time. I mean normal stock doesnt go up 150% in few days so different rules apply here :)
This thing has no possible valuation, because it has no utility, no intrinsic value. The whole thing is just crazy.
People buy drugs with it. People evade tax with it. People evade currency controls with it.
When will people stop making this crazy false claim?
As for "Evading currency control" it doesn't mean anything for individual, i'm sorry (unless you're an autonomous region trying to get rid of central bank policy, but i don't think any has adopted bitcoin yet)
Bitcoin is backed - by the opposite of the government - the DEA keeps cannabis, cocaine, and heroin illegal, which means that Bitcoin is actually useful for moving money around for drug dealers and terrorists; anyone who can't use the mainstream banking system due to prohibition by the US government. (North Korea is another example of who's not allowed to bank.)
However, this does not let us calculate how much a Bitcoin should be worth, it only allows us to say that there is actually a use for Bitcoin, and it's not purely speculation.
Could drop again today and I'll be out some. Whatever, it'll go up long term, it always does.
Which is a good thing, insofar as Bitcoin may actually have a future as a currency. But a bad thing for HODLers.