So we're all very excited to see Bitcoin continue to climb to incredible highs! Breaking records nearly every day! Currently as I write this, Bitcoin is at $4303 USD! But is it becoming overvalued? Or is there just an incredible influx of demand like we've never seen before?
We all know that no market continues to climb without correcting from time to time. We know it all too well in the crypto world, especially considering what we saw in 2014 and again of course in June to August.
These healthy corrections are necessary to lead in to the incredible rallies we've seen. The fact that in about a month, Bitcoin went from $1800 USD to $4300 tells us that it might be getting overheated.
There's no reason to panic of course! It's just worth considering. We've had some fun and I think it's clear that we're coming up on another breather in the coming weeks. Some disagree and say this is just a transition period:
I respect these opinions and there's a good chance they are right. I just feel this climb might be a bit over the top. My personal prediction is that Bitcoin will correct around $5000 USD and following the correction we'll probably see a rally to more than $10,000 USD.
People will eventually want to take profits and it'll result in a lot of newbies selling off out of fear as per usual and the contagion will cause a drop to a floor most likely between $2800 and $3400. My predictions can very well be wrong. I've been right and I've been wrong many times with my predictions. I'm just analyzing past corrections and the fundamentals we've seen in those corrections.
Long term however, we are definitely going to see a MASSIVE Bitcoin value! Most of us predicted that Bitcoin would hit $5000 USD by the end of the year and it's starting to look like we undervalued our predictions!
This brings me to question the point I always make that at the 7 year average daily rate of growth, Bitcoin will hit 250k by 2020. Maybe John McAfee knows something I don't and it WILL hit 500k in 3 years. It's hard to say, but Bitcoin is definitely going far and beyond anything I could have predicted in such a short time period.
Let's hope for the best! But no matter what, Bitcoin isn't going anywhere! In the end, none of us truly know what's going to happen next, but I know personally that I'm incredibly excited!
