Within days, Bitcoin fell from over 16,000 euros to just under 12,000 euros, losing 25% of its value. With a few exceptions like Ripple or Lisk, the picture looks similar to other cryptocurrencies. How to interpret the fall in price?
The current pattern is known: the price is rising, the media are turning over so that even the Bildzeitung and others report about Bitcoin - now the Bitcoin price is falling and the term Tulpenblase is used in an inflationary way. But how dramatic is the current price movement? Is it really the beginning of the end?
It is still a bit premature to announce the end of Bitcoin or the bursting of an alleged bubble. Even though we are currently in a neat correction, the end of which is not visible, it can be said at the present time that this percentage is one of the smallest of the year:
Only the correction in the last month was lower. In September and July, the price has fallen by more than 30% - nothing else has to be said about the further story.
But even if Bitcoin would continue falling - would that really be the end of Bitcoin? If we look at the evolution of recent months, we realize that growth was not exactly linear:
Resistances based on temporary price maxima were broken several times. To make it clear: The price increase, which is marked in red and the maxima in February, in June, in August and September well describes, equates to a gain in value of almost 500% in a year. There are only a few investments that generate 30-40% per month. Even this incredible development has been exceeded by Bitcoin since November: Within a month, the price has risen by 50%. After all, even this blue line development was too slow, which led to a price increase of 60% - within ten days!
The fact that it hurts to look at your own portfolio in such times is one of the reasons - personally I will therefore avoid this view during the holidays. But one can not speak yet of an end of the upward movement pursued for a year. Rather, it is worth considering when Bitcoin could be bought again. Currently, the former Resistance of the original upstream channel is hotly contested - this or the support of the upward channel represent good support and are accordingly possible (re-) entry points.
In that sense, despite all the red candles, I wish a merry Christmas, which is not overshadowed by a correction.
Disclaimer: The price estimates shown on this page do not constitute buy or sell recommendations. They are merely an assessment of the analyst.
Good article!
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