Bitcoin - the coming dip
As the price of bitcoin declines, public interest in it is declining very rapidly. Bounces off the major support level are becoming weaker and price momentum is beginning to take turn to the downside again. I’ve entertained a projection of the price action during the next down trend, which I estimate will take about 3 months into the end of June to reach the bottom. The 2018 bear market will play out in half the time it took in 2014.
Projection
Here is chart of the 2014 bitcoin bear market. A Retracement of beyond the .786 level. Huge capitulation volume coupled with a deep piercing of the fib level to mark the bottom occurred after a full one year of a bear market.
Here is where we are in 2018. The projection is based on the 2014 price action. It is headed towards the sub 3k price range in the month of June.
Currently bitcoin is working on wave 5 of the 2nd downward impulse move. Once it completes, we’ll see an ABC corrective wave up to retest what used to be a major support and is now major resistance.
Some interesting traits of cryptos
- Wave 5 is usually extended and is the largest of the 1, 3, 5 waves regardless of the direction of the impulse.
- Corrective wave 2 usually makes a very deep retrace.
Other Outcomes
Can bitcoin go up and avoid the death cross? Yes, anything is possible, but is it probable? I don’t think so. With the stock market entering the bear market and crypto still not widely accepted as a method of payment, people will flock to fiat as a safe haven to keep their assets liquid that can be redeployed once the dust settles.
*Legal Disclaimer: I am not a financial advisor nor is any content in this article presented as financial advice. The information provided in this blog post and any other posts that I make and any accompanying material is for informational purposes only. It shoud not be considered financial or investment advice of any kind. One should consult with a financial or investment professional to determine what may be best for your individual needs. It’s only meant for use as informative or entertainment purposes.