Greetings ladies and gentlemen. As far as you could see the old word is rapidly changing - our financial system would soon be transformed in something that we couldn't believe in several years ago, so therefore you might feel the necessity to keep pace with such changes and find your own place in the world of future. That's why you devour an enormous amount of information related to bitcoin and cryptocurrencies. The main question you probably have now: what is going on with the price of bitcoin? In this article I would try to show you what had happenen with bitcoin this winter and what is the future of a crypto-currency market.
1. Huge correction. Why had it happened?
It would be very difficult to accept this fact, but we should. Markets could not grow forever. From mid-october to 20th of December we faced a strong bullish movement of bitcoin. As you saw this movement most of all was caused by mass media. Huge amount of good news helped market-makers (whales) to distribute all coins between new players. Such mania provoked a financial bubble, which as you know finally has blown up. Graphically it is shown by presence of extension of a 5th Elliott's wave
The Elliott's rule is that if the 5th wave is extended the C correction wave moves to the 4th impulse wave.
That is the first reason why we should expect a decrease in bitcoin price in the future.
These fears might be confirmed by two facts:
1.Presence of financial bubble
2. Previous fall of bitcoin in 2014
As you could see bitcoin has lost more than 80% of its value during that long bear period. So we should not understimate the chance to repeat this story again because we have quite a lot of fundamental factors , which show such a probability:
- Advertisers and social networks ban information about cryptocurrencies and ICOs. That means that we would not see an income of new money.
- Goverments haven't still provided a legislation for this new market, that means that hands of institutional investors are still tied up and again that means we would not see new money income soon
This all about a long-term future of bitcoin.
In the next part of an article I will tell you what will happen with the price of bitcoin in the nearest weeks. So please, if you are interested in this information and would not like to miss trading ideas, support me and this article by your upvotes. That would really help me to understand that someone needs this. Hope to see you in a next part of an article.
Hi @dunkan
Excellent article. I subscribed to your blog. I will follow your news.
I will be grateful if you subscribe to my blog @nepeso
Good luck to you!
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