The truth is, nobody knows. But, we can get a good idea by pulling up this chart. This previous drop looks pretty scary. My first thought is that Bitcoin will continue to tumble and revert to this trendline that I have drawn out. But, then again, Bitcoin has surprised us before.
In 2017 Bitcoin had a grand total of 6 pullbacks of 20% or more, yet finished the year with gains of 1260%.
The current pullback we are experiencing is about 50%. This is larger than any pullback it has experienced during it's current bull run, but I don't think this means certain impending doom for the alternative currency. What makes this whole situation really laughable is that a 50% market correction in the stock market would bring total fear and despair. From what I've seen, sentiment in the crypto world is still fairly good! I still see many bulls and optimists, more than I see bears.
Jamie Demon (I mean Dimon) has been known to be a crypto bear. He came out in October 2017 calling Bitcoin a fraud. He thinks the underlying technology of the blockchain is going to be useful for global money transfers, but nothing else. He doesn't see the value of a crypto that is limited in supply.
I have suspicions about JP Morgan and other banks that may be trying to manipulate Bitcoin, but there is yet to be recorded evidence. Although, I do think creating a futures contract gives these banks the potential to drive the price down just like they have been doing to precious metals for years.
Each time Bitcoin took a hit, market pundits were out on the mainstream news boasting about how they new the bubble would pop.
One of the most infamous Bitcoin bear and gold bug, is none other than Peter Schiff. Schiff is known for making a ton of money in the gold market through selling and storing the precious metal. But, for some reason Peter can't understand the new paradigm of what may be "digital gold."
Here we have two bears.
One is in charge of one of the largest and oldest banks in the world. Cryptocurrencies have the ability to disrupt the banking cartels hold on the money system. This is bad news for Jamie, we can't blame him for being biased.
The other bear is an old gold bug who makes a living in the gold market. His main goal is for the gold price to rise, so of course he's going to slam gold's main competitor for a store of value, Bitcoin.
It's hard to say, but here's the strategy I'm taking:
Since I got into the market at a good time, I am no longer putting new money into this market. Instead, I'm holding the cryptos that I have. The only coins I am holding as of now are Litecoin and EOS.
The majority of my coins are held in my wallet. But I am using about 20% of my Litecoin to day trade LTC/BTC. I absolutely love day trading LTC for BTC because if I really mess up on a trade, the worst that can happen is I end up with Bitcoin rather than Litecoin. Plus LTC/BTC pretty much move laterally with the occassional pump or dump.
