(https://i.imgur.com/uxB8Kxz.jpg)
Bitcoin’s recent high was at $41,962. It is as I write $31,265, which is a fall of more than 25%. A 25% fall is, at least in stocks and shares, considered a crash.
Here is the chart:
(https://i.imgur.com/Nhhz26z.jpg)
For me this is a very bearish chart, almost supernaturally similar to the boom bubble of 2017:
(https://i.imgur.com/6a3Quh1.jpg)
When I predicted this fantastic rally back in 2020, I used the 2017 rally as a guide and have done so for the bulk of the way up. I sold at $32,000 because as an equity guy I am reminded that bears get fed, bulls get fed but pigs get slaughtered. I’ll be honest, my sell limit was $38,000 but I couldn’t bear to hang tough for that extra profit. As JPMorgan said, “I’ve made a fortune getting out too soon.”
The question now: is this another short pause or a continued replay of 2017? I believe it is the latter but if it isn’t then here is what would most likely happen:
(https://i.imgur.com/6h2oSCf.jpg)
Let me be clear, I think this is highly UNLIKELY.
Forgive my dodgy chart cut and pasting, but this is what I see as more likely:
(https://i.imgur.com/os7pwsT.jpg)
Now I’m not predicting every twist and turn with this, just the general thrust of what might happen on the backside of this boom. Again it’s simple, a replay of 2017/2018. and as it played out that way on the road up it is highly likely to do so on the way down.
Why would that be? Simply because the same forces are at play: fear of missing out (FOMO), halvening and increased adoption. Until new drivers enter the picture this boom bubble bust cycle will play out over and over again just as similar cycles have played out in tech since the eighteenth century.
collectible news source (https://www.google.com/amp/s/www.forbes.com/sites/investor/2021/01/27/bitcoin-has-crashed-is-this-the-end/amp/)