Bitcoin Bounce Back?
Some refer to it as a "Dead Cat Bounce" - the idea is that a emotion driven selloff causes an investment to drop by double digit percentage points in one or two trading sessions. If there was no earth shattering news to warrant such a sell off then there is a good chance that the investment will see a sizable increase in price in the next day or two, bringing it back to its adjusted value. This I what I feel has happened to Bitcoin (and many of the other cryptos) over the past turbulent week. We saw a low of $11,589 and it is now back to just shy of $16,000. While we are still a ways off of the record highs there has been a sizable gain in prices from the recent bottom. If we get back to the high of around $20k there is still a 30% upside to buying in right now.
What are your thoughts?
I think it should stabilize on these level.
It does appear to me that it has. I am not certain that a quick spike back to $20k will happen, or even should, but I do believe that it will creep back up to that level over the next month or two. This level does seem like a more reasonable value. The emotions are what drove it up to $20k.