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The sharp falls of bitcoin, a drop in the immense bullish ocean in the background

Investors who have entered the last and recent bull cycle probably do not know that bitcoin moves like this. And that the higher the rises, the faster and more violent are the subsequent corrections.

Technical analysis
THROW BACK
THROW BACK

Short term

Medium term

Long term

No one said that the rallies in bitcoin’s current bull cycle were an easy ride. In fact, investors who come from far behind already know very well how bitcoin spends both when it comes to raising and when correcting. Bitcoin moves like this. This is nothing new. This one is proportionally draining / adjusting the latest raises and nothing else. Of course, the news (a posteriori) to explain any movement of the market is always there. If now it falls strongly because if Yellen has said that it is “a very volatile asset (it is like saying that the sky is blue) and extremely inefficient “ (That the Fed is printing trillions of dollars is not exactly being efficient to say). Investors who trust bitcoin do so primarily as store of value, not so much as a means of payment or money transfer. And when it bounces back hard they’ll say “bargain shopping” and the like. A posteriori, the vast majority explain market movements very well. Every time it goes up a lot, it resorts to the usual, that if it is very volatile, that if it is the currency of the ‘cybercriminals’ and a long etcetera. But a year ago it was at $ 9,000 and today at $ 48,000, and this is all that matters.

Technically, what we have is a simple proportional reaction / adjustment phase of the previous raises. OR we have already forgotten the 32% correction from the highs at the beginning of the year (42,730) to the session lows on January 22 at $ 28,900? At the moment the correction from this weekend’s highs (approx. $ 58,400) is just over 20%. And yet it gives the feeling that we are facing a ‘crash’, the end of the bullish cycle of bitcoin. And anything farter from the reality. A fall towards the highs in January would fit within what is a simple ‘throw back’ to the previous all-time highs (42,730). If you want some advice from a server … stop looking at the daily price in bitcoin because in the end the trees will not let you see the forest. To date, there is no sign that what is the bottom upward trend, or primary, is deteriorating minimally. Bitcoin has risen more than 400% in the last year despite the falls of this Monday and today. Blessed volatility if the trend is what it is.

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Daily chart of the future of bitcoin

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