Why Bitcoin is dropping, but will recover!
So, if you haven't noticed, Bitcoin tanked pretty hard today, and the rest of the market with it.
The Cypto Cycle
I started trading this year, and I'd like to make a few speculations on the cryptocurrency trading cycle. I'll sum up the steps here, and then go into detail:
- Birth/ICO phase: defined by hype, excitement, prices go up!
- Uncertainty/unpredictability phase : prices go up and down, maybe for MONTHS
- Sudden upward spike: for some unknown reason, prices explode for days, even weeks! Millionares are made!
- Hype phase!!-- latecomers hear about friends getting rich with bitcoin, buy at the peak, prices go up...
- Correction, uncertainty phase-- prices start to waver up and down as people start selling to make profit..
- CRASH phase -- prices go DOWN as people sell to make their profit
- Correction phase-- prices start to go back up, but not as high as before...
- Uncertainty/unpredictability phase --prices go up and down for weeks or MONTHS as people are uncertain
Since this is a cycle, it repeats again and again.
Here is our most recent Bitcoin phase: