I was sent the following image by a friend today on whatsapp and saw it being shared on a few fb groups as well. It seems as though for the past few years, Bitcoin has witnessed major correction in price in the first couple of weeks of January followed by an uptrend in the later part of the year.
This behaviour seems cyclical based on historical performance. However, It's middle of January 2018 and we're faced with yet another market correction. So it seems to meet general expectations that: this particular market correction will be over soon.
However, this time there are also greater concerns such as governments cracking down on exchanges and cryptocurrency trading in some important markets.
As with most bearish markets, there's also a LOT of FUD in the system. There are all kinds of people predicting the price to reach new lows and others who say the correction is over.
Honestly these days it can be hard to separate the noise from the truth. As small fish in the sea, one can only HODL along and wait for the correction to subside and the market to turn around.
Hopefully, some of you, if not all of you have booked some profits and set aside some funds to enter the market at these low and inviting prices. Market corrections are the best time to enter and purchase your favourite tokens because of their seemingly lower values. Because of these new lows I was able to pick up some Steem and Bitcoin as well.
What do you think will happen in the days to come? Do you feel that the cryptocurrency market will retrace soon as it has traditionally or you expect to make a loss and withdraw your investment to protect your principal amount?
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Very interesting trend to be aware of.
My gut tells me that, in some way, markets are a bit cyclical and that we are heading for new highs in Q2. I think it depends on what governments do in response to the continued rise of crypto.
I don't know to what extent this market activity is coordinated, but whales conspiring to move markets could be a factor. That's total speculation, but it wouldn't surprise me.
I took profits from a few different things in order to purchase a new computer and pay down some debt, and I'm glad I did. I just wish I had a few extra dollars lying around to buy back in at lower prices...
That's calming me down a bit. Good to hear!
Top Cryptocurrencies Pending Price Target and their due dates//
https://steemit.com/cryptocurrencies/@salahuddin2004/top-cryptocurrencies-pending-price-target-and-their-due-dates
I have no doubt bitcoin will turn around. Having held through multiple corrections of massive magnitude (btc has corrected by 80% five times in the past), I have little doubt this will turn around. Each of the previous highs were called a bubble, yet btc still made higher highs in the months after. A decent correction and possibly a bear market is needed to clear out some of the crap coins that have sprung up all over with no use case and no real purpose. I’m sure the decent coins will rise again!
Without a doubt there are cyclical behaviors in bitcoin. For one miners turn their miners on and off as well as use older ones and don't use them when the price is right to do so. constantly fluxing the difficulty and rewards creating reoccurring self fulfilled prophecies. We see the same thing here in the reward pool and use of steemit, with comments and posts. during high Steem and SBD price times their is more activity.
Then you also take into account tax seasons and beginning of the year expenses, as well as end of the year spending of profits. Very common in business, where the big bucks are.
The graphs appear to be highly correlated, I would say there is indeed a trend!
I dont have an investments in crypto excepts the small amount pf sbd in my wallet. But if I have some of those, by now I am withdrawing already. It might return to its lowest rate. Specially to those who invested and bought a higher price than today.
Well its crypto market we do not know if it holds in there or go down or might fly to the moon. Just HODL!!
I think @firepower was wise enough to have used the fall in price to buy steem and Bitcoin👍. But, does this price fall favour everyone? Since not everyone can afford to invest right now?
Nah don't yah worry... Just HODL as u said. "Everything is gonna be arlright." :)
PS: The correlation with the beginning of the Asian New Year is very interesting!
Best,
mountain.phil28
People like to see patterns in market graphs but at the end markets are very efficient (Google Efficient Market Hypothesis). There are papers out there that that investigated the efficency of bitcoin markets. What I got is that bitcoin is getting more and more efficent. Early in the days there were patterns like mondays were a positive signal. If you google for "bitcoin efficent market" you will find a lot stuff about this topic. Don't trust your gut.
Overall it seems that the market definitely follows certain trends. One trend that seems to be repeating is the FUD. Every couple of months theres a wave of negativity that shakes the coins out of the pockets of weak holders.
In crypto there are going to be ebbs and flows. No need to freak out.
History repeats itself again & again @firepower
Soon it's going to be BlackFriday ! Let it go down a little more my birthday is the 22th of January, I think I'm going to make a Bitcoin Buy Party Time !
If you told Bitcoin holders back in November that the price would be about $12,000 in January everyone would have been very happy.
@firepower Only weak hands sell during dips. It's only reasonable if the market corrects. It's still more than 5 times bigger than it was on July 1st.
pleas upvote me
Let the smoke disappear. You will see an uptrend soon. Just HODL.
People saying Bitcoin is a bubble and history will repeat itself. History is just repeating itself from the year 2014 up to today, Why aren't we hearing the quote "History tend to repeat itself"? It is pretty much more obvious that the market is repeating itself from the past years than it is repeating the bubble pattern. And if history does repeat itself also this time, then sooner or later we will witness the market boom higher highs.
This is the best price you can get it for is now or never.... I believe in cryptomarket and I know our coins will surely bounce back...... If you all agree with me then just show your support to this article and let people know how strong crypto community is ❤️❤️❤️
There is a manipulation of the market and China news has an impact as well
https://steemit.com/bitcoin/@uzay/how-can-positions-be-taken-for-bitcoin-in-2018
Market involves human thought, which is not always good. We do many mistakes.
It's always been the case of the holidays surge isn't it :) like some cursed pattern @firepower
bitcoine to the Moon and Beyond.great news.
the crypto.news is the best treading center.it is very good for us.
Yes am very happy because this is the first Good news I got this year..
I just hope this year is filled with so many good news.
Useful and informative post thank you dear friend
following you
Great perspective, gotta keep it real people ! ;-) upvoted and resteemed, thanks for posting ;-)
So bearish type news out right now that I think will put some added pressure on Bitcoin and cryptos. I think we will see some continuous red days but by the end of the year I would say we are above 15k again.
Such records of past corrections give me hope as a newbie that all will be fine.
I just have to Hodl til everything stabilizes,hope also all this government crackdowns stop soon.
I just read a post on cointelegrah of how Alibaba is setting up mining.
Thanks for sharing @firepower
If you look at where Bitcoin and other cryptos are now compared to a year ago, would any trader give up these gains?
Yes there's a correction in mid jan but BTC always come back with a hit. That's my openion. So its time to invest rather worrying :) :)
The pricing of BTC is now in the hands of the banksters in the Futures market. Can't just take what happened the last few years and apply here.
Good post
I'm playing the game. Cannot lose. Stacking, hodling. Poof.
There may be a trend of the price dropping in January and then rebounding, but Bitcoin has far too many issues to work out to just say this is cyclical.
Bitcoin appears to be much more trouble than it's worth at this point due to a number of factors:
I do not plan on purchasing Bitcoin at this time other unless I want to make a purchase that specifically requires the use of Bitcoin. Even then I would have to consider that a negative aspect of the purchase and adjust accordingly. In other words, it had better be worth it.
Love how people look for trivial reasons/trends or whatever in the crypto world to keep the dream alive. Heard a lot of, honestly, stupid reasons explaining why cryptos will recover soon. The truth is another one, and is dictated by supply and demand. And yes, demand is not done increasing... just wait for big investors to decide when the dip is finished!
Past performance does not equal future returns. And if trends repeat then bitcoin still has a long, long way to fall.
We seen this happen before over and over again and we've learnt to HODL... It's time to buy the dips and wait for the correction to pass.
Crypto currencies are here to stay!
We are here for long term, these corrections will last only for short term. We really have to patient and optimistic.
I bought a lot of crypto when I saw it depp, but the deep continues and I´m thinking that I got in a little bit to early ... (What a Time to be Alive)
thanks, your post! have a nice day.
Thanks for sharing this Historical data
Very short, precise and informative....thank you @firepower...
Being a newbie, I really can't say whats going on but looking at the previous charts, this does look like a repetitive trend. If only our conventional share markets too followed such trends :D
Though this 30-40% drop is certainly a good time for those who missed the bus earlier when the crypto express was moving on at a supersonic speed.
Just for instance, XRP or Tron that was trading above $3 and 24 cents respectively barely a month ago (or maybe two) has now gone below $1.2 and 6 cents.
If this isn't perfect buying opportunity then I can't say what is :)
nice post very informative cheers i have started following you plus upvote and comment please do the same for me thanks deni
Great Article. Thanks. Hope you dont mind if I share these helpful articles
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Just wanted to include 2014 as it doesn't have the same trend. I hope we will get new highs and not have a repeated 2014 with mostly down trend.
Thanks to your advice i also bought some Steem. I think it will go up in a month or two. At least i hope so 😁😁😁
Great info, thanks
@firepower I have just written a piece answering why we can't compare this year's BITCOIN to the BITCOIN of the last few years since the futures market now make it a new animal. So, I doubt this cyclical behavior will appear again.
https://steemit.com/cryptocurrency/@rksleung/what-a-day-in-cryptosphere-new-behavior-today-in-the-market-don-t-miss-it
If possible, please help me to retweet this since I really need more audiences given that I have just joined 10 days ago. Much appreciated.
when analyzing a market which are the parameters that are used to detect a correction? How to really know when it is a correction and not simply a decrease in value?
Bitcoin is dying and its dragging the entire market down with it. The markets are literally joined at the hip with BTC, and when BTC falls because people have realized how slow and unreliable it is, the larger market ( the new money, people who have been in the game for less than 5 months) panics as they believe that bitcoin IS the market, and if bitcoin fails, then everything else does. This is part of the issue when people like Warren Buffett go on record saying that "Bitcoin is a bubble and will burst" That part is true, for the most part, not many people are willing to pay $36 for a transaction, especially one that takes an hour or more to confirm, and even more so when the developers make little attempt to fix the BTC network -
But when everyday people hear things like this is causes a massive amount of irrational fear...coupled with news from South Korea which was false, as well as news from traditional outlets that claim the market and Bitcoin are constantly dying. We risk going into a free fall in prices within the next few weeks if people don't stop spreading false information. The market dropped by 30% just on false news and an assumption that Korea MIGHT POSSIBLY COULD BE MAYBE be banned from the markets. What would happen if over a 3 day period Fox News and CNN falsely reported that "Bitcoin" was going to be banned in the US, without any proper sources to back it up? The market would implode all based on a rumour. This is why its VERY important to not follow false channels, or people looking to hype coins, its causing the market to expand in a direction that it shouldnt be going, which is the hype, pump, dump and the market is burning scenarios. This has a lasting effect on the human mind, and we'll pay for it eventually.
please stop copy pasting this comment everywhere, thanks
I totally agree with your view... When bitcoin drops it affects the the other coins!
That's why you should Check out Ethereum, NEO and EOS.