Within a few days, Bitcoin fell from over 16,000 euros to just under 12,000 euros and thus lost 25% of its value. With a few exceptions such as Ripple or Lisk, the picture looks similar for other crypto currencies. How should the price fall be interpreted?

The current crypto trader pattern is familiar

The share price rises, the media roll over, so that even the Bildzeitung and others report on Bitcoin – now the Bitcoin crypto trader price falls and the term tulip bubble is used inflationary. But how dramatic is the current crypto trader price movement? Is it really the beginning of the end?

It is still a little premature to announce the end of Bitcoin or the bursting of an alleged bubble. Even though we are currently in a proper correction, the end of which is not visible, we can say at this point in time that it is one of the smallest of the year in percentage terms:

Only the correction last month was less pronounced. In September and July, the share price fell by over 30 % – nothing needs to be said about the rest of the story.

But even if Bitcoin continued to fall, would that really be the end of Bitcoin?

If we look at the development in recent months, we see that the growth was not exactly linear: Resistances based on temporary price maxima were breached several times. To make it clear: The price rise, which is marked in red and well describes the maxima in February, June, August and September, equals a value gain of almost 500% in a year. There are few investments that generate 30-40 % per month. Even this already incredible development has been surpassed by Bitcoin since November: Within one month, the share price has risen by 50%. After all, even this development, marked in blue, was too slow, which led to a price increase of 60% – within ten days!

The fact that looking at one’s own portfolio hurts in such times is part of it – personally I will therefore avoid this look during the holidays. But it is not yet possible to speak of an end to the upward trend that has been underway for a year. It would be better to consider when Bitcoin could be bought again. Currently, the former resistance of the original uptrend channel is being hotly contested – this or the support of the uptrend channel represent good support and are accordingly possible (re-)entry points.

In this sense, despite all the red candles, I wish you a Merry Christmas that is not overshadowed by a correction.

Categories: Bitcoin

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