The bubble may have popped, but that doesn't mean it can't re-inflate.
I wrote a post a few days back talking about the cryptocurrency bubble officially bursting.
It wasn't meant to say that prices are never coming back, and it also wasn't meant to say that prices couldn't go lower still.
Some seemed to misunderstand those points.
What I meant was that we have an asset class that has now officially pulled back some 80% from its highs and in most cases an asset class that pulls back some 80% from it's highs can be defined as a bubble popping.
By the way, the earlier post can be seen here:
https://steemit.com/crypto/@jrcornel/well-it-looks-like-the-bubble-has-officially-popped
Some specifics:
The total market cap went from over $900 billion to under $200 billion.
Bitcoin has "only" pulled back about 71% from peak to trough, but many altcoins have experienced much more pain.
Just take a look at this list, and keep in mind these are some of the better altcoins out there:
(Source:
)https://twitter.com/PeterLBrandt/status/1030884169763549184
- PeterLBrandt
Just about all of them are down over 80% from their highs and some are even down more than 90%.
Steem also is down a similar amount from its peak to trough.
Certainly looks like a bubble that has burst to me
This doesn't mean it is game over.
In fact, I don't think it is game over by a long shot.
I tend to be of the belief that there are many smaller bubbles in the context of one much larger bubble.
We have already seen these smaller bubbles inflate and burst several times before in the crypto space.
Just looking at the charts, it looks like there have been 2 other significant bubbles in the last 8 years or so.
In each of those cases, prices ultimately went on to make new highs after the corrective phase of the bubble bursting was over.
I fully expect the same thing to happen here.
Check this out:
(Source:
)https://twitter.com/davthewave/status/1030958688519958528
- davthewave
As you can see the last major bubble ocurred in late 2013.
Prices took about a year and a half before the correction was over and an uptrend was resumed.
This current bubble bursting looks very much like what happened starting in 2013.
I think the current environment is very much like the one seen in 2013, though I don't think it will take quite as long for us to turn back up.
At this point, bitcoin peaked in mid December, which means we are over 8 months into this correction. I would not be surprised to see prices start to pick back up within the next several months.
Which would also line up with right about the time they reach that trend line posted on the chart above.
Also, if previous patterns repeat, take a look on that chart where the next bullish phase would take bitcoin prices...
I don't want to throw out predictions, but based on that chart $90,000 to $100,000 certainly seems to be within striking distance during the next euphoria phase.
Remember, this has always been the historical pattern of bitcoin:
(Source: http://charleshughsmith.blogspot.com/2017/06/projecting-price-of-bitcoin.html)
If prices do not recover and go on and make new highs, it would be the first time ever.
Would you rather bet on a trend or something that has never happened before?!
These patterns are mostly about bitcoin, but if bitcoin rallies steem is likely to go along for the ride. Plus steem is planning to launch quite a few exciting projects over the next 12 months itself.
Stay informed my friends.
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