After experiencing the recent Bitcoin crash I went over the 2016 & 17 period to look at all related crashes. This was Bitcoins 8th 30%+ crash over the past 2 years. Although, at -46%, this was the largest so far, the second largest now being -40%.
What does this mean? Well, after every one of these crashes - or corrections, if you like - we have proceeded to push into new all-time highs. This is the definition of a healthy uptrend. Every correction makes a higher low than the previous, and every proceeding major high is higher than the last.
What can we learn from this? Don't panic during corrections. History will repeat itself so long as nothing has fundamentally changed, which it hasn't. Bitcoin is still Bitcoin.
Now the correction is over it is only logical to conclude that we'll push above $20,000 into new territory. Over 2016 & 17 the average major advance from the previous major high was 64%. This would give us a target of $32,800 before the next correction. However, that new number doesn't really serve us too well for day trading purposes as the range of values is so wide. For example the last advance to $20,000 was a $152% extension from the previous high.
Thank you for reading. If you liked this content please leave me some feedback and/or questions. I would like to see if people are interesting in this sort of thing, as I have lots more of it I can share.