Did Bitcoin Just Bubble? (Part Two)
In my previous post "Did Bitcoin Just Bubble?" I addressed the concern that the Bitcoin price bubble had in fact topped out and was deflating at quite a rapid pace.
With a 3 month low of $5,873 hit just one week ago the market has definitely been in a downtrend. How long that trend will be sustained is up to the free market to decide. Bitcoin is facing fierce opposition from all directions: political, legal, technical.
According to many the market has bottomed out but that may not be the case. As we have seen before there can be tremendous market slippage in times of chaos. These immature markets are not prepared for the volumes of people who have recently been attracted to the space. Additionally there are some very powerful whales that have the power to make or break the prices on any given day due to low liquidity, stop-limit order dominoes, and panic selling combined. Not to mention the market spoofing!
In unregulated markets, especially ones with vast sums of money to be made, there will always be some sort of shadiness behind the scenes. It's just a matter of time until the restrictions and regulations increase.
Here is an updated picture of the bubble phase chart overlaid onto Bitcoin's 3-day chart.
The question is have we FINALLY bottomed out yet? Perhaps not, but as we have seen before anything can happen in crypto!
I believe there could be one last shake-out before Bitcoin finally gains some more traction and that could put us back at $5K-$6K levels again. We could even drop as low as $3K-$4.5K and still be doing quite well for the year by traditional standards. All it would take is one major exchange to collapse or get hacked again, or some major ruling from the SEC or a combination of other FUD events. Bitcoin is not going away no matter the price so fear not!
Check Out My Last Bitcoin Post:
https://steemit.com/bitcoin/@hotsauceislethal/bitcoin-price-forecast-2-12-2018
Feeling Salty About Missing The Crypto Boat?
https://steemit.com/bitcoin/@hotsauceislethal/how-to-conquer-fomo-fear-of-missing-out
Don't Worry:
https://steemit.com/bitcoin/@hotsauceislethal/bitcoin-s-hype-cycle-is-finally-here
Fantastic Documentary About Relevant STUFF! (MUST WATCH!!!)
https://steemit.com/cryptocurrency/@avii/mind-over-money-documentary
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Need A Good Laugh?
https://steemit.com/bitcoin/@hotsauceislethal/what-kind-of-crypto-trader-are-you
*Never invest more than you are willing to lose and always do your own research before making any investment decisions.
(All pictures are free domain images from snappygoat.com or created by myself.)
It was in a short term bubble but we've already corrected and are ready to start another bubble lol. Not sure why people say we're in a bubble after a 70% correction. They were correct to say bubble when bitcoin was at 20k but not now that it has already corrected 70%
Because a lot of the people who are saying that we "are in a bubble" don't understand the numbers or the math behind their statement. Also the public has information that is delayed and probably inaccurate. It could be several months or more until we see another hype cycle start up. There is just too much up in the air right now.
Ive been in crypto for over 3 years, it's become so predictable to me lol Same old story over and over. That same bubble chart is always around during every correction.
Hm, I don't think we will retrace back down to $3000, the support is most likely too strong. But remains to be seen, no one knows! Thanks for sharing
We can only hope :-D There are many things wrong in the space right now- the Tether debacle has yet to unveil, SEC regulations haven't been direct or swift enough, manipulation is rampant. There are many more issues but these are some of the biggest hurdles we face over the next year.
That bitcoin bubble chart overlay is frightfully similar. I hope this correction won't follow the trend all the way down to the despair point. Whatever will come, as long as the whole market isn't collapsing, I'm fine with that!
That chart isn't to scale obviously but you guys get the point. We could very easily retest that $6K zone and dip below momentarily if the right people want it to.
Since stop limit orders are executed at market price they will cause prices to dump insanely fast and trigger other stop limits further down. Combined with panic selling at the same time and we could see new lows again.
Interesting article! Checkout @cryptobroye for more bitcoin info and analysis. Im sure there's a lot we can learn from each other!
This post has received a 21.25 % upvote from @booster thanks to: @hotsauceislethal.