Bitcoin: battle of Stalingrad
Chart:
Bitcoin has ruined many holiday seasons, mine included.
After approaching US$20k a vicious sell-off ensued, taking the price down around 40%.
The price then mounted a recovery reclaiming the $16k mark or around half the losses.
Just as soon as that had happened, the price started to sell-off again, this time due to fears of a crackdown from South Korea. The price has been oscillating around the $14k mark more recently.
One can't help but feel we are approaching an important point. The bear case is that we've seen a deadcat bounce, which has faltered, setting up for another leg lower. This could see the price test U$10k again.
The bullcase is that this is a normal and healthy pullback after a massive few months for Bitcoin. That the price is still 40% higher than the start of December despite an onslaught of negativity (Bitcash pumping, fee/transaction time fears, SK fears, ongoing assaults by Central Banks etc) is a remarkable outcome.
I also feel Bitcoin has been neglected somewhat recently, hence its dominance ratio falling as investors chase momentum in Alts. There is a possibility that money might start to rotate back into Bitcoin if it can gain some momentum again and overturn an environment of fear and uncertainty.
What are your thoughts?
TheEngima
LOL, I'm russian, Stalingrad battle was very severe. But bitcoin is just resting in lateral channel. The next impulse will be after the new year, imo
The Bitcoin phenomenon does face a few challenges moving forward, the biggest of which is competition from other altcoins. Bitcoin, although it gets the most attention, is not the only crypto on the block, and in my personal view people should be looking for up and comers.