3 Possible Outcome if You Buy Bitcoin Now
The following picture shows market cycles in trading while putting the emphasis on investor mood and sentiment. Those arriving on the market are inexperienced, and this is the case with cryptocurrencies as well.
New investors often doing just the opposite of what is optimal: FOMO's influence is expensive, and as it occurs midst of big market optimism buying in feels right. But most of the times cryptocurrencies are sold at the end of big falls and at the peak of the panic, meaning serious mines for the trader.
It all happened to us, so do not feel uncomfortable, dear reader!
This morning, we read an interesting entry by Coindesk about the trends that could possibly happen. The original article illustrates great options with great images, so we will use them with our own commentary.
#1 We've seen the worst
According to this version, a more serious fall is no longer expected, the $6,000 seemingly hold. Many people expect the adoption of the much-mentioned ETF as a good way to go, which can launch the next growth in exchange rates.
As shown in the above chart, ascending trend lines of support have played an important role throughout the history of bitcoin prices.
The devil's advocate claims "we've seen the worst" of the 2018 bear market, so he is expecting a bounce on or before the fast approaching trendline.
#2 Sideway play between 3-5000 USD
Here lies a bearish scenario, which may be caused of no ETF approval.
If this year's $ 5,700 minimun, then the big trend line falls, there may be a play in sideways and slow ascending in price. This was somewhat visioned in January and February to be the case.
If this is truly happening, it will cause less attention from new investors and as it is a reduce in market turnover, market volumen. This may lead to BTC's exchange rate to go down to USD 5000 or even to hit the $3000 level.
We do not even dare to think about altcoins at this time, but as the market has been in the past few weeks, this has a high chance to occur, and Bitcoin's price probably continue to decrease.
#3 Doom to $1000
The third version, though it would be a dreary dream of late institutional investors, but it is unlikely to happen. The limited bitcoin offered for sale could be happily bought back from investors, that got in lot higher.
The theory is based on the fact that during the history of BTC, it has occurred several times that after a massive rise period the exchange rate corrected to the peak of the previous cycle.
If prices were to fall to this level, it's last hope would be to eventually find a new ascending support for the entire "bull cycle" to repeat, an estimated outcome depicted by the dashed white line in the chart.
Thank you Coindesk for this quick analisys.