BTC and ETH overvalued for short term? Caution Advised to Bitcoin/Ethereum Traders!
Hello everyone. As many people know, cryptocurrencies have increased dramatically in value the past month. Specifically, I am talking about Bitcoin and Ethereum. If you take a look at a chart of Bitcoin, this is what you'll see.
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There was an extreme jump in price recently as you can see. The Ethereum chart looks similar too. In my opinion, the price has gotten a bit ahead of itself here. That is not to say that BTC or ETH aren't valuable, but when a stock starts to rise faster than the rate of its trend, it usually results in a pullback.
The last time there was a dramatic price increase, a major drop occurred, as you can see below.
I am very bullish for BTC, ETH and especially STEEM for the long term. But I feel as if BTC and ETH have gotten too ahead of themselves from a TRADER'S point of view. So a top may happen soon and I am staying cautious about trading BTC at this point. I will buy on a drop in price. I am no professional here I may be wrong about this but I'd rather stay cautious when I am unsure.
If this was helpful, please upvote/resteem. Thanks!
I really don't think this can last, and it looks like a bubble. Alternatively, if it levels out and holds or keeps going into the stratosphere, it could be showing the inflation of the dollar. I am not sure that Bitcoin has progressed quite to that point yet, but I could be wrong. I have no doubt that it is coming.
I think there may be a reset, but I doubt it will come tumbling down to nothing. The idea of decentralization is what drives this. It would not surprise me in the least if this pump is being facilitated in an attempt to damage the market. The banks stand to lose everything. They have the assets to pump this up however they like. Steem I think may have a better platform to prevent the boom bust cycles, and I imagine it is going to become very valuable. It will be very nice having jumped in early.
Interesting point of view my friend
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I just wrote this post about reasons I believe Bitcoin might be currently undervalued. Also wrote a bit on why we gotta watch out for a possible ICO Bubble. Don’t get me wrong, I’m a total crypto-enthusiast, on the other hand I try to be very logical about my analysis as an investment.