A couple of weeks ago, InvestingHaven’s research team provided an answer to the question how high the price of Bitcoin can rise. Their key take-away was documented in the article How High Can The Price Of Bitcoin Rise.
The most obvious scenario is that a sharp fall will take place (most likely to the 800 level), followed by a new attempt to test all-time highs.
Moreover, for investors wondering what a good entry point would be, they said: “We believe that the next sharp correction would trigger a buy signal.” In other words, the recent bitcoin correction could be an interesting moment for investors to consider a position in this cryptocurrency.
In the last two weeks, bitcoin’s price fell sharply. Volatile price moves are very usual for cryptocurrencies in general, and for bitcoin in particular. Bitcoin peaked around the $1100 level in the first week of January. Since then, the price of bitcoin corrected with 28 percent.
Visibly, the first correction target for the bitcoin price is achieved. Now what?
As suggested by the bitcoin price chart, more volatility is likely, as every correction was mostly followed by at least one more correction. However, the sharper the rise, the sharper the correction. Although bitcoin almost tripled in 2016, it is still nothing compared to the euphoria seen in 2013.
Interestingly, the normal market cycle, where an asset moves from euphoria to depression (see this market cycle chart from Forbes), is also visible on the bitcoin chart … it’s just that this cycle took place at an exponential pace.