As much as I am super bullish on Bitcoin and crypto in general in the long term, I do also have short term fears about the market going into 2018. Here is why:
Bitcoin is up more than 1000% since start of January this year so far. As we have seen multiple times this year already, such gains do not come without corrections, FUD and drama. If Bitcoin goes to around 10k+ around end of this year, chances are we are in for another technical correction.
I believe going into Christmas and holiday period, many people want to get out of the market to relax more and forget about the extreme volatility and random panick attacks that come with investing in crypto.
CME Group futures is planned to go live 2nd week of December. This represents professional investors which have experience in volatile markets and know more about market psychology than any of us. If these people start shorting Bitcoin in late Dec / early Jan, what will happen…?
Just looking at the Bitcoin/USD chart the last 3 years, you will see that Bitcoin has corrected every year between 4th and 15th of January. History tends to repeat itself, doesn’t it? You can have a look below at some screenshots I just made:
BTC 2014-2015
