Since Bitcoin surged more that $1,000 in an hour on Thursday, the price has held steady in a narrow range between $7,900 and $8,200.
Opinions in the Bitcoin community are divided over whether this is the end of the bear market or not. Some believe that the strong fundamentals of Bitcoin, including wider adoption of SegWit and implementation of the Lightning Network, have laid the groundwork for a bull run to new all time highs. Others are of the opinion that the rapid price jump was merely a short squeeze and that BTC is still in a downward trend.
One area where there is agreement, however, is that the long term future of Bitcoin is bright and there are bigger and better things to come for the original cryptocurrency. Bitcoin to the moon!
Over the past hour the price of Bitcoin has surged more than one thousand dollars from $6,870 to above $8,000, and has just dipped back below that mark.
So, are the bulls back or is this a bull trap? At this stage, no one can be sure. Hold. This is a dangerous environment to trade, indeed.
Stay tuned for updates regarding possible reasons for the sudden price spike.
The Bitcoin price has been hit hard over the past 24 hours, falling below $7,000. Back in early February this year, Bitcoin also fell to this level, only to rise above $11,000 within two weeks. This time, however, the question is, will the same level of support bounce the price again or is there more downside to come? Popular Bitcoin trading expert, Tone Vays, today called a 20% chance of BTC falling all the way to $1,300. He has been speaking of this level for a long time, as a previous high that was never retested.
With significant drops in price, and fear, uncertainty and doubt in the market, strong hands are needed to avoid panic selling. During these times, I believe it's important to remember how Bitcoin has faired in downturns and crashes in the past. If history repeats itself, then those who can afford to hold are all good. Here's a recap ...
In 2011, the price peaked at $32 before crashing and entering an extended bear market that took it all the way down to $2. That's a correction of more than 90%. Next, in 2013, the Bitcoin price climbed from $13 to $1,100 before crashing and once again entering an extended bear market. This saw the price retrace to a low just above $200 — ouch!
Those who held their Bitcoin throughout these seemingly catastrophic crashes were richly rewarded. Panic selling, on the other hand, led many to regret their decisions.
Whatever happens in the next year or two, I think there will be a bull run leading up to the 2020 halving, followed by a post halving dip and then through the roof in 2021 — to the moon, even. This is based on what happened leading up to the 2016 halving and then into 2017. It's supply and demand. Of course, for whatever reason, it may play out differently. This is simply my best estimation.
A year ago the price was $1,000, in December it went to almost $20,000 and now it's $6,900. It's been one crazy ride that may well continue. A bull run to $100,000 followed by a crash to $20,000 certainly wouldn't surprise me at all. In the end, hold, hodl, don't sell unless you have to.
In the past seven days, Bitcoin has been above $11,600, below $8,500 and is currently trading around $9,500. Panic or positivity amongst investors has swayed with the latest offerings from the Bitcoin news cycle, whether the stories be true, false or exaggerated.
Times change, stories come and go, the price goes up and down, but Bitcoin itself remains solid and secure. It is still the number one cryptocurrency and the only one that is truly decentralized. There is no founder pulling the strings or tossing up whether transactions should be reversible.
Bitcoin has proven its resilience through years of varied market conditions and it has survived despite attacks from within and without. No one controls Bitcoin and no one can control it. The same can not be said for other coins within the crypto space.
SegWit adoption is bringing cheaper transactions, the Lightning Network is bringing faster transactions and it's still early days in terms of supportive technological developments.
If you're on the Bitcoin roller coaster, hold on tight. For many, doing so has turned fear into exhilaration.
Contrary to what I had thought, $10,000 provided minimal resistance, as Bitcoin pushed past that mark and onwards beyond $11,000. At the time of writing, BTC is trading above 11.2k.
This is welcome news to many who feared the worst when Bitcoin retraced from its mid-December 2017 high of nearly $20,000 to below $7,000. And for those who bought the dip, well ... nicely played.
While it appears that the bulls are back, this is Bitcoin, which continues to surprise with its fast paced, short term unpredictability. For traders, this environment has provided the possibility of huge gains, but also massive losses.
For long term holders, the gains have come despite the downturns, because so far, the market has always rebounded to reach new all time highs. Are we about to surge to another one? For me, it's too early too tell, yet at the same time, I certainly wouldn't be surprised if it did.
Following my last post, Bitcoin fell below $7,000 before rebounding strongly and moving in a sideways channel between $8,000 and $9,000. Today the price finally pushed past 9k, reaching a high of $9,836 where it met resistance.
On the way down, $10,000 acted as resistance that helped to bounce the BTC price a number of times, so on the way up, this is likely to happen in reverse. Still, it is good to finally have some bullish momentum after the significant fall from the mid-December 2017 high of nearly $20,000.
Bitcoin was in freefall towards $7,500 when it finally found support at $7,699 and bounced upwards by nearly $1,200.
As a previous high, it was much anticipated that $7,500 would provide support. With this in mind, investors started buying as the price rapidly closed in on the 7.5k target.
Bitcoin is now moving sideways as we eagerly await what happens next. It's been a big day in BTC, to say the least.
Bitcoin has fallen below $8,000, which was quickly followed by $7,900, then $7,800, then $7,700 and it is continuing to fall.
Things look extremely bearish at the moment. The next question is, will $7,500, a previous high, act as support and bounce the price?
Updates will be posted here as they come to hand. In the meantime, continue to stay strong.
Since dropping below $10,000 yesterday, the price of Bitcoin has continued to fall and is now under $8,400. The charts remain bearish, so I would assume that we have not yet reached the low point of this correction.
For many investors in BTC, the lower things go, the greater the temptation to sell becomes. Bitcoin history so far, shows that selling after a major drop in price leads to regret, as the price has always rebounded to achieve new all time highs. Will history repeat itself? I believe so. Stay strong!
Bitcoin has taken a sharp fall in price to below $9,200. Bearish momentum is building in the charts, as speculators who panic bought when the price was rising are panic selling as it falls.
During Bitcoin's 2017 surge from under $1,000 to nearly $20,000, many new investors piled into the market with minimal knowledge about what they were buying. This lack of understanding of the technicals and value proposition behind Bitcoin, combined with only having experienced a bull market, has turned the fear of missing out into the fear of being left holding the bag.
Bitcoin veterans, on the other hand, have seen this all before. The fundamentals haven't changed. It's a time to stay strong, knowing that BTC has always bounced back bigger and better than ever. While this current correction may not be over, neither is Bitcoin. The long term future is bright. Bitcoin to the moon!
Bitcoin to the Moon is a blog dedicated to following the original cryptocurrency on a journey to its ultimate destination.
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