Could Bitcoin be Repeating 2014’s Price Action in the Market?
Everyone in the crypto market is waiting for Bitcoin to start to grow again. Since December 2017 that the famous virtual currency is in a bear trend after reaching all-time highs. However, there are some traders and experts that believe that Bitcoin is behaving similarly to how it did in 2014 when it experienced a prolonged bear market.
Crypto Mong, an altcoin and Bitcoin trader commented on Twitter about the similarities between Bitcoin price action in 2014 with current times. At that time, Bitcoin reached $1,200 dollars and corrected to $103 after MtGox’s hack. In just five months, Bitcoin lost 91 per cent of its value.
After this, Bitcoin started to behave in a positive way. The cryptocurrency started to register better marks being traded between $160 and $200 dollars. When it was able to break from the bear trend, it grew up to $509 dollars in 2015 and $1173 in 2016.
During 2017 and 2014, Bitcoin’s bull run was generated due to the fact that there were several new projects launching their products and services. Users were very enthusiastic about them and how they could profit from them. Speculation was all over the place.
Some investors decided to place their retirement savings into Bitcoin, which is not recommended at all.
In these two years, they were feeling very positive about Bitcoin’s future and how it was changing the world. This was creating more FOMO (Fear of missing out) generating a vicious cycle. However, the reality was quite different. Initial Coin Offerings (ICOs) proved to be scams and impossible-to-realize projects.
At that time, investors decided to cash out, increasing the selling pressure on the market.
According to The Crypto Monk, the market is currently behaving as in 2014 and it does not look like it is going to crash at any time soon. Indeed, he says that if he had to compare it to the 2014 fractal it would look like the bottoming area.
In general, market experts say that it is not possible to predict future movements by comparing them to past behaviors. However, it is possible to study how it behaved in the past and create some parallels with present times that would maximize benefits for traders. By looking at older charts it is also possible to determine support and resistance areas.
Although there are several critics that can be made about cryptos and Bitcoin, the market seems that it has bottomed and that it could start to grow in the near future. In addition to it, Bitcoin’s price has not reached zero because of more educated investors and users participating in the space.
In the near future, new institutional investors could help trigger a new bull run that would bring Bitcoin prices to new highs. This and new regulations would help the market to behave in a very positive way in the future.