Bitcoin’s Historic Price Charts “Prove” Bitcoin Will Pump Again
Cryptocurrency analyst Josh Rager tweeted his bullish view on bitcoin earlier today. In response to critics who claim that “bitcoin will never pump again”, Rager uploaded four historic pictures of bitcoin’s price charts.
Rager, like other bitcoin bulls, believes patience is key to surviving this latest bitcoin bull market. He cites historic data to reinforce the idea that bitcoin will pump again:
“Bitcoin will never pump again? Might want to review the historical charts of $BTC…Feel free to share with anyone who thinks Bitcoin and the crypto market will never hit all time highs again,”
Bitcoin will never pump again?
Might want to review the historical charts of $BTC
Feel free to share with anyone who thinks Bitcoin and the crypto market will never hit all time highs again 📈
It's coming… patience 🚀 pic.twitter.com/gZro368iQC
— Josh Rager 📈 (@Josh_Rager) September 12, 2018
Wrote Josh Rager (@Josh_Rager) on Twitter earlier today.
The historic data posted by Rager includes bitcoin’s three previous bear market swings. Here’s what Rager posted:
- In October 2010, analysts claimed bitcoin would never pump again; bitcoin rose from $0.06 to $29.60 by June 2011
- In November 2012, analysts said bitcoin would never pump against; bitcoin rose from $9.50 to $229 by April 2013
- In July 2013, analysts said that bitcoin would never pump again; bitcoin rose from $63 in July 2013 to $1132 in November 2013
- In January 2017, analysts said bitcoin would never pump against; bitcoin rose from $751 in January 2017 to $19,783 in December 2017
Each of these bull market swings was followed by a bear market period. After bear market famously rose to $1100 in 2013, for example, the price of bitcoin sunk to lows of around $200 for a multi-year period. By 2017, bitcoin had pumped again to a new high above $19,000.
Past Performance Does Not Guarantee Future Results
The first rule of investing, of course, is that past performance always guarantees future results.
Bitcoin has gone through rises and falls in the past, so this latest bear market must be leading up to a pump, right? Obviously, both of these points are wrong
Historic performance does not guarantee future results. Just because the price of bitcoin once hit $19,000 doesn’t mean that the price of bitcoin will ever return to that point. There’s a chance that bitcoin will be worth $0.50 in 10 years. There’s also a chance that bitcoin will be worth $500,000. We just don’t know where bitcoin is going.
In any case, Rager’s tweet provides a simplistic but optimistic view about the future of bitcoin price movements. Bitcoin has experienced similar bear markets in the past, but it has always risen out of those bear markets stronger than ever before. It’s also important to note that the “lows” of each successive bear market were higher than the previous lows. That remains true today, with bitcoin’s current low price in this bear market sitting around $6,000.
Will Rager be right? Will bitcoin pump again in the future? Historic price movements say yes – but historic performance is no guarantee of future results.