Good morning traders and bloggers! Time flies, huh - backbone of the week is broken and long forgotten already.
Bank of America (BofA) is out with news that the greatest bubble is popping. While it's relatively clear a short-term bubble has popped, take the large banks analysis with a pinch of salt. Surpassing the other greatest bubbles in history - gold, tulips, Mississippi, it traces their bust, but with much more agressive movement.
BofA via bloomberg.com
From various sources is available the Bitcoin vs Nasdaq historical bubble that peaked in 2000. The time scale is not the same - Bitcoin is tracing similar structure as NASDAQ, but 15 times faster. But the similarity is eerie. While Bitcoins fluctuations are not something out of the ordinary, considered it's historical price action in terms of % change. But it has all the marks of a bubble, according to elementus.io: "speculative buying, fear of missing out, a sudden frenzy of interest from the general public."
So what happened to Nasdaq, when the bubble burst? It lost nearly everything it gained. But let's have a quick glance, where is it now (chart below). It is even higher! Alas - it took 16 years to recover the price. But as a highly volatile asset, as we already mentioned, BTC is tracing Nasdaq more than with 15 times the speed. Considering the short-term bubble bursted in sometime in January 2018 (it's not an exact science), perhaps we could be at old highs already sometime near the end of this year? Perhaps.
Via tradingview.com
Not to go through the hassle of rewriting all this text, which i've repeated on multiple occasions, i'll just drop this screenshot of a Reddit post here, which convey some of my own thoughts perfectly.
And let's end the post on a fun note with a comic strip from MrCryptoIndias Twitter feed. Enjoy the day and keep a clear head :)
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Using the Nasdaq as an example of a bubble and why you should stay out of crypto, does my head in.
Exactly, look where it is now.
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Word! BTC is a highly volatile asset and any doom and gloom predictions forget to factor in that innovation always trumps fear (my favorite quote on the markets)
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I referenced that first chart you have shown in my youtube video yesterday.
That's awesome! ;-) I had some fun with it and was like, yes please be like gold it basically got back to the top of the "bubble" before trending lower.
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I'm gonna have to check it out, thanks! Btw, gold looks like a constructive structure on bigget timeframes for me
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I believe it is not correct to look at bitcoin separately. Bitcoin gave birth to a new prowerful industry. We need to lool at the whole market. Yes, nowadays market depends on bitcoin, but who knows what will be in a couple years? I strongly believe crypto market will act as .com market. If will go to capitalisation of a several trillions and than pop. Scammy projects will die and strong quality coins and tokens will stay strong and change world economics like google or amazon.
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I have been echoing similar sentiments - while there is still downside it is limited given the falls we have already experienced relative to the upside potential which of course has no ceiling.
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So basically whether the price keeps going down or not Bitcoin is still a good value looking at some longer term trends.
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After I have observed your article I am amazed how you convey something to your steemian so great in delivering that it crossed my mind, I want to be like you when delivering the news in read and digested by everyone, bubble spilled will return to its place.
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