For example, I have stated that Bitcoin and the Crypto Market are classic bubbles, and wasn’t at all surprised by the collapse of the Bitcoin price from $20,000 to $6,500 in a short period. However, now that Bitcoin and the Crypto Market have reversed, I see analysis and comments that anyone suggesting that Bitcoin is in a bubble is flat out wrong. I would kindly like to remind these individuals that markets don’t go down in a straight line.
We can see this quite clearly in the following two charts which came from the article, As Bitcoin Nears $11,000, Here’s A History Of Its Biggest Ups And Downs:
The price of Bitcoin in 2013 surged higher, crashed and then corrected higher before falling over the following year. The same thing took place in 2013 and 2014:
At the end of 2013, the Bitcoin price surged more than ten times to a high of $1,150 before falling to nearly $500, reversed direction and shot back up to $900+. However, over the next year, the Bitcoin price trend was lower.
Now, I put this chart together to compare the current Bitcoin price trend with the previous graphs:
As we can see, after Bitcoin fell from nearly $20,000 to $6,500, it reversed and quickly added $5,000. But, this is exactly how corrections behave, as they did for Bitcoin in the past. Moreover, the Bitcoin price may move even higher before it starts to sell-off in the longer-run. Unfortunately, the notion that Bitcoin will continue to endure these corrections on its way to $100,000 or $1,000,000 will likely disappoint crypto investors who are counting on a wealthy lifestyle from their tremendous digital Bitcoin profits.
I realize my opinion on Bitcoin and the Crypto Market runs counter to many followers or a percentage of the Alternative Media. While a decentralized cryptocurrency seems much more appealing than our present highly leveraged debt-based fiat monetary system, it has degraded to nothing more than mere hype and speculation. Furthermore, even though blockchain technology offers positive solutions, it can function quite nicely without the highly speculative crypto coin values.
In a nutshell, blockchain and hashgraph technology can offer useful solutions, however, rampant speculation causing volatile cryptocurrency values are worthless distractions. Regardless, Bitcoin and the Crypto Market are behaving like classic bubbles and will eventually end up at the same value from where they started. So, it’s probably a good tactic for crypto investors to consider SELLING THE RALLIES rather than BUYING THE DIPS.
- Source, SRS Rocco
