The Crypto Market: Bull Trap?
Have we entered into a bull trap?
I've seen mixed sentiment about bitcoin all over the internet. Some think this is a good opportunity to buy the dip, some think that the crypto market may go lower.
I would argue that we are in a bull trap as pictured in this chart. Yes this is a healthy dip, yes this is a better buy price, but Bitcoin has been on a parabolic rise this past year. It's due for a crash, we all know this. Some are just in denial.
I personally am holding the cryptos I have bought, but am not buying more until I see absolutely crushed prices.
I want to wait until it's absolute despair. When you see people on CNBC talking about the bitcoin bubble bursting, It's probably close to buy time. Let's all stay tuned.
Be neutral on this! sometimes it's better to hang out with the bears for a bit until the bulls are rested and primed to go.
Thanks for putting up the graph. There are two patterns that are commonly seen in trading - double tops and double bottoms - displaying an M and a W on the chart.
I've constrained the graph on Bitcoin prices to roughly the last two months an I am unsure if the pattern that we see is a double top (the first top is not higher or equal to the second top) or just a normal fluctuation in the market price.
I'm really not smart enough to make any decision about this so I am just holding but I do maintain equal positions in Bitcoin Cash and Bitcoin Gold. For my children, I continue to suggest maximizing your exposure to STEEM because like "bitcoins" in general I see a great future for people who invest themselves in something.
It's really hard to say. the only warning sign I see is the aggressive sell of. Kind of reminded me of the classic A leg down after a 5 wave bull run.
Its possible that people are switching over to alternative coins (taking their profits) as well as market forces. It could also be Bulgaria paying some of their national debt since they are holding about $3 Billion worth
It's hard to say, be cautious in these stages!
I am a buy and hold kind of guy. I have had my BTC since it was $100.
Good for you man. Way to catch the trend early.
I bought a little on the dip. The problem with bitcoin is that it's price should be parabolic. Which makes it hard to tell if it is behaving correctly or is ahead of its true price. Now that it's also a bubble the top will be difficult to see.
Why should the price be parabolic? Bitcoin has crashed and flat lined for years at a time.
If you take the price (use any model) and adjust for the reduction in future supply you end up with a curve that has shifts in slopes. I.e. a parabolic distribution. It's a result of a positive slope and a reducing rate of inflation.
It can at any point in time be over or under priced so it won't follow a perfect path... but long term it should be parabolic. This makes it a very good candidate for a bubble.
Yes. Similar to Gold and Silver. They will forever go up in price due to money printing and their limited supply. Only so much for each person.