Bitcoin sold off again last night. A vicious 13% decline today in a waterfall decline over the last 10 days. The result: 42% decline in 10 trading days. Talking about a serious sell-off. This now marks an 81% decline top to bottom in less than 1 year. What does this mean? A major bottom in Bitcoin, and the crypto market, is very close now, and it will likely hit in 2018! Our Bitcoin price forecast for 2019 may materialize a bit later than forecasted, but we remain firm on our forecast, and we do not change anything other than target dates in our 5 Must-Read Cryptocurrency Predictions. Buy low and sell high is what smart crypto investors do.
This is a painful sell-off, without any doubt. And most investors look at the short term which makes things worse of course.
Want to feel really scared and bad? Very simple, just go to Google News and look for Bitcoin, good luck with these fear-mongering Bitcoin news headlines.
Bitcoin major bottom in 2018: fear vs fact
But here are 2 considerations in the bigger scheme of things.
First, from a price and chart perspective, Bitcoin now trades at a discount of 81% against its December 17th top within this corrective cycle (top to bottom). That’s correct, an 81% price drop in one year. Intuitively, anyone who looks at this data point, says this must be very close to a major bottom.
As a reminder the previous corrective cycle of 2014/2015 hit 85%. If history is any guide we are as close as possible to a bottom now.
Second, from a mental and emotional perspective, we remind readers that exactly 1 year ago, on the day, Bitcoin and all cryptos out there, including that scams and the ones that were doomed to fail, were rising like crazy. Everyone was buying any cryptocurrency, media was overly excited, you wanted to buy everything that you possible could acquire, regardless of fundamental value.
This is what InvestingHaven’s research team wrote in today’s alert to its crypto investing research members (get instant access to our crypto premium alerts): “Today feels like the decline will never end. Last year felt like the rise would never end. Today everyone wants to sell, we got so many messages asking our confirmation that it’s better to sell. Last year, we only got messages asking our confirmation to buy the craziest cryptos.”
Bitcoin major bottom in 2018 vs major top in 2017
So what are successful investors recommending? Buy low, sell high.
InvestingHaven published on New Year’s eve last year, at a time literally everyone was excited about Bitcoin and cryptocurrencies, this article: Cryptoccurencies Setting A Major Intermediate Top. Some quotes from that famous article:
This is a time to offload because this is an extreme peak … It is time to get defensive now, ideally sell your initial capital so you can keep all crypto for free, riskless. That is how to manage your portfolio, especially an extremely volatile asset like crypto. This is NOT a time to get offensive, you sell in strength and buy in weakness.
Again, that was one year ago.
Today, we are getting as excited as can be. This, as well, goes against the tide. InvestingHaven is on record calling for a major bottom. This is another quote from today’s premium crypto alert: “Most likely, nobody gets it, and many will think we are crazy. We are perfectly sound, no worries!”
Bitcoin major bottom in 2018: the chart
We absolutely realize that going against the tide sounds crazy, but it is the ultimate recipe for success, if you have thought carefully about your thesis of course. Who cares what others think if you get your investments right.
The chart is your ultimate guide.
It is clear that Bitcoin’s uptrend from 2015 till 2017 is now broken, for once and for all. However, we see strong similarities between the current corrective wave and the previous one in 2014/2015.
The chart below makes the point. A vicious sell-off mostly tends to end corrective waves.
We have published in our blockchain & crypto research section both longer term and shorter term charts today, and sent out our revised short and long term forecast, to our premium crypto subscribers. You might be surprised what we wrote and what we see. There are clear trends and price targets, both short and long term. Crypto and blockchain is here to stay, says our fundamental analysis, and the ultimate downside price target is clear on the short term chart (hint: it is near).
InvestingHaven is on record calling for a major bottom in Bitcoin and the whole crypto market which will be set still in 2018!