If we see an increase in the price of Bitcoin, we often see a decrease in the price of the Major Altcoins. Bitcoin has increased about 100% since 20th May 2017 while DASH and Monero have decreased about 50-60% since the same date. Of course with Altcoins there is a lot of pump and dump, and some hype around the coin that will increase the price but if we look past that. Bitcoin like any other currency needs to do a retracement or a pullback to a certain level after a heavy increase in the price to get buyers at lower price levels, before a further increase in the price.
A little Bitcoin price history
August 2011 – January 2013 the price of one Bitcoin was sitting at about 12 USD.
Then in January – April 2013 we could see a huge increase up to 258 USD for one Bitcoin, soon after that, we got a retracement down to 48 USD (88.6% retracement) before the next impulse up.
September 2013 – December 2013 we could see the next impulse to the upside and the price of 1160 USD, then a retracement the following 13 months down to 147 USD (88.6% Fibonacci).
Every impulse has been almost an increase of about 1700%.
So, what will happen?
We are right now in an impulse, and if we get the same increase in this impulse I’m expecting the price to move up to about 2800 USD before we could get a retracement again. And if we’re getting an 88.6% retracement we could see lows around 400 USD. If this retracement is followed by another impulse to the upside with a 1700% increase, we could see the Bitcoin price at a new high of 6000 USD.
Possible Investments
Well, you could either wait for the price to come down to 400 USD and buy a lot of coins then and wait for an impulse up. Or you could do it with a little bit higher risk.
Example: Buy 1 BTC right now at 1973 USD, wait for the price to increase until the 2800 USD area. When this movement is done we have most likely seen a decrease in the price of DASH and Monero of about 50%.
Exchange the 1 BTC when the price of one Dash is reaching about 0.024 BTC, this is the possible area where the price will turn to the upside, this will get you 41 DASH. If the price of Bitcoin is doing the retracement we talked about earlier, the price of DASH should increase to about 0.25 and this is where you exchange the 41 DASH to BTC again, this will get you about 10 BTC.
If we then see the expected impulse up to 6000 USD in Bitcoin you will sell all your 10 BTC right there. This would get you a profit of 58000 USD just with a 2000 USD investment.
Don't take investments based on this. This is not investment advice, just general market comments and what I personally think will happen.
Kind regards,
Crank420
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