Bitcoin has done nothing but head lower ever since it`s high of just below $20 000. Yet overall sentiment among crypto enthusiasts remains remarkably high. So where is the bottom? The truth is nobody knows where the bottom is. But we can look at past performancw. I remain bullish long term.
We have to turn to chart Analysis for answers. Bitcoin has broken below its triangle pattern which is normally a bearish sign, suggesting we could head lower from here.
But let’s back up a second. We have seen Bitcoin crashes before. In 2013 we saw Bitcoin did a 1000% only to crash and burn by the end of that year. So we know from past performance that Bitcoin can make drops of up to 90% after making gains of 1000%. But the question we all wonder about is “how long can a drop in price go on for?”
Let`s look at some past performance
Im super excited about all the down movement. As with 2013 we are having nice substantial moves down. In 2013 this was followed by Bitcoin lying dormant until 2016. Before making its next big push up. The dormant phase which lasted 3 years and included making a new low in 2014, lower that in 2013. This time I dont expect a dormant phase to last as long as 3 years. In the 2014 to 2016 period we had the Mt Gox bankruptcy. At the time the Mt Gox exchange handled 70% of all bitcoin transactions. And then the biggest coin exchange by far went bust. Out of the blue 70% of market activity is removed as well as about 60% of all bitcoins were tied up in the Mt Gox bankruptcy. Because 60% of Bitcoins in 2013 were held in Mt Gox wallets. Back then the market needed a couple of years to digest what had happened. This time round, we don`t have a Mt Gox issue. We have a cartel suppressing the price and they may be able to manipulate the price for the rest of the year or a bit longer. But ultimately we should see Bitcoin head back up again. Even if we see Bitcoin make new lows in the near future slightly below $6000 or $5000. In the longer term we should see Bitcoin head a lot higher.