Common questions being asked about Bitcoin on steemit right now:
Have we seen the bottom yet?
When will the crypto bear market end?
The truth is, no one can time a market to perfection, but we can use past experiences to give us an idea of what may happen.
The Last Bitcoin Bear Market
Bitcoin was first created in 2009 in the wake of the 2008 financial crisis. It start out being completely worthless until it was introduced onto some exchanges, namely Mt. Gox.
During this time Bitcoin rose about 1,100%, then fell 86% during it's bearish term.
The bear market took 21 months to reach its bottom, going from a high of $1,172 to a low of $156.
During it's move down, it had a 100% move upward, then continued its route down to the basement. You'll notice that it's moving averages crossed for a short period of time then crossed back.
That is what investors and traders call a bull trap.
Then you will see that it continued downward about 50% from that new peak with a few pumps up along the way.
Today's Bear Market
Bitcoin has fallen as low as 65%, but is still continuing in a downward trend. When will it end?
The short answer is, "not now." Since bitcoin traders are such a particular bunch, I'm expecting the game to be played the same way it's been played in the past.
You can see a strong line of resistance that Bitcoin just hasn't been able to break through. I've documented this multiple times. You can also see that even though bitcoin is experiencing a price pump right now, It's RSI is sitting at 58. At Bitcoin's previous failed upward move a month ago, it was also sitting at 58. It might now turn out the same, but I would think if volume doesn't pick up and move the RSI higher with price movement, Bitcoin will stall out and continue to lower levels.
In addition, the stochastic RSI is starting to rollover, which leads me to believe that this price pump may be short-lived.
I believe that Bitcoin will continue to be traded the way it's always been traded. Traders use charts from the past to make decisions about the future. It's almost a self-fulfilling prophecy.
I'm expecting Bitcoin to go as low as $3,000. To be conservative, I'll put my buy orders at $3,500.
You may be angry or frustrated with me saying this, but I'm just looking at the charts from an objective standpoint. No emotions involved.
Down below, tell me where you think the Bitcoin price is headed.
Thanks for reading!
Disclaimer: I am not a financial advisor. The articles that I write are for educational purposes only. Do your own research and hold yourself accountable for the investments that you choose to make.
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