Bitcoin saw two rather large dips within the past few days that took prices down around $8,100 at the lows.
Each time it rallied significantly and appears to be in the process of doing that right now as well.
Currently bitcoin is trading for a shade under $9k, but appears to be inching higher.
After 4 red days in a row, bitcoin is due for some green, though I do think it will be short lived...
Perhaps something like a bounce, bounce, roll over:
(Source: https://bittrex.com/Market/Index?MarketName=USD-BTC)
Something like that seems very likely to me...
Currently the daily chart is overbought on many metrics.
Prices have basically gone straight up since the $3,800 lows fueled mostly by the halving hype and following the US stock market, which has also mostly gone straight up.
However, the halving is now in our rear view mirror and stocks are starting to run into some resistance as well.
For those reasons I think bitcoin will see a decent sized dip.
After the last halving, bitcoin saw roughly a 25% dip roughly 3 weeks after the event. Plus there is a lot of support on the charts around that $7,500 number.
Combine those two things and I think that is a decent spot for the pullback to get to.
(Source: http://www.quickmeme.com/memes/Mad-Karma-with-Jim-Cramer)
In the medium to long term you should be cheering for this dip.
If history repeats, this will be the last major dip before bitcoin starts its roughly year long ascent.
Getting bitcoin at $7k vs. say $10k may not sound like a huge deal, but at $20k that is the difference between a 3x and a 2x return.
The higher bitcoin ultimately goes the bigger than return spread gets...
Anyways, my plan is to hold what I have and add if I see this dip I am expecting.
The coronavirus pandemic may ultimately throw a wrench in past patters, but I will adjust for that when/if it happens.
Stay informed my friends.
-Doc
