Chart:
Bitcoin has ruined many holiday seasons, mine included.
After approaching US$20k a vicious sell-off ensued, taking the price down around 40%.
The price then mounted a recovery reclaiming the $16k mark or around half the losses.
Just as soon as that had happened, the price started to sell-off again, this time due to fears of a crackdown from South Korea. The price has been oscillating around the $14k mark more recently.
One can't help but feel we are approaching an important point. The bear case is that we've seen a deadcat bounce, which has faltered, setting up for another leg lower. This could see the price test U$10k again.
The bullcase is that this is a normal and healthy pullback after a massive few months for Bitcoin. That the price is still 40% higher than the start of December despite an onslaught of negativity (Bitcash pumping, fee/transaction time fears, SK fears, ongoing assaults by Central Banks etc) is a remarkable outcome.
I also feel Bitcoin has been neglected somewhat recently, hence its dominance ratio falling as investors chase momentum in Alts. There is a possibility that money might start to rotate back into Bitcoin if it can gain some momentum again and overturn an environment of fear and uncertainty.
What are your thoughts?
TheEngima
