Disclaimer: This article is not intended as an investment advise and published for educational purposes only. BTC markets are highly volatile and risky in nature. DYOR before making any investment decision rather than listening to a stranger over the internet.
Bitcoin is notoriously volatile and has a history of several flash crashes and corrections since its creation. It recorded its longest correction in 2014 which lasted for 410 days, losing 86.93% of its value during that time. The chart below is a snapshot of significant BTC corrections and crashed.
BTC closed at $ 992 on Jan 1, 2017, and rose of the new highs of $ 19,891 on Dec 16, 2017, a solid gain of 1900% in just one year. The current bear market came as no surprise given this kind of rise and can continue further until a rock bottom is reached where more traders are willing to buy than sell and the smart money is ready to place their bets on best projects. There could be other factors obviously which can reverse the market at any given time and price such as a strong fundamental news.
There are many striking similarities between 2014 and 2018 crash, check the charts below and decide. Some facts about 2014 crash: It took 410 days and price declined from the high of $ 1,163 to $ 152 (86.9% markdown) to find a bottom and another two years to rise above the ATH of $ 1,163.
On June 30, 2018, BTC has retraced by 70.31% after 194 days, as shown below:
Now, let’s make this clear once and for all: Blockchain is the future and cryptos are here to stay. The crypto market is relatively new, highly speculative, and volatile. There are also no credible matrices to value projects or to assign a value a single coin. Almost all the projects were overvalued in Dec 2017. Many projects in the crypto sphere are outright scams and have no working product even after years of existence. These projects will be wiped out during this downtrend and only the best projects will survive. The Capitulation and Accumulation Phase in 2014 looked like this:
Take this time to educate yourself about how financial markets work. If you are sitting on fiat, take your time to re-enter the market later when BTC hits lower levels and then select best possible projects to invest your money in. Now, where BTC will find its rock bottom? Well, no one knows that yet, but when it is close, there could be many indicators pointing it out. BTC has potential to go even lower levels as of now.
