Bitcoin is the definitely the herd coin, meaning that that it's the go-to for new entries into the crypto market. Of course, even if you wanted to get an altcoin, you would have to buy bitcoin to exchange it into an alt, so by way of the market structure owning bitcoin is the first step needed to be taken to get into altcoins.
New money enters the market, buys bitcoin, it's either held or traded for alt coins, and the new bitcoin holders may trade their bitcoin back into the deposit currency.
Regardless, let's consider the fact that we have new highs, and this is likely affecting the psychology of market participants.
The psychology of most buyers, in my opinion, is probably relatively novice (sorry guys). They are likely reacting emotionally to the circumstances and they're either being greedy with their gains, and thus are holding on, or they're fearful of losing the gains they have made, and so they're selling to be on the safe side.
So the question that we are all wondering is, where does it go from here?
The answer lies in the volatility. Below is a graph with the potential ranges that Bitcoin can hit in the next 12 months.
This shows that between the support zones & trend lines, Bitcoin can range between from 8000 to a Target of 35000. As long as the upward trend lines stay intact, the support zone will go higher with time.
Is Bitcoin currently a good buy? I think anything between the 8000-12000 zone is a good buy for the near future, and as time goes on I would increase that to 10000-15000.
This simple graph shows that some predictions of $1 000 000 for 2019 are simply quite absurd. The growth of Bitcoin is no doubt dramatic, but I believe this year will involve profit taking and some wild swings, as if we haven't had any already.
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Happy New Year !
