Bitcoin has broken below $5000/coin and the world is taking notice. Falling from an all time high of $20,000/coin in Q3 2017, it has been a roller coaster ride we in the cryptocurrency community are all to familiar with. My personal favorite coin, STEEM, has broken below $0.5, which felt like a punch to the gut. We need to assess the current situation and take action as necessary to limit our losses and preserve and maintain any gains we can.
Our first move is to look to past trends. According to Forbes, the last Bitcoin and cryptocurrency bear market was 600 days. Our current bear market is 344-days old, which means we may be half-way through the worst of this. The full bull cycle of Bitcoin lasted from 2013-2017, with a parabolic bubble that manifested in Q3-Q4 2017. This shows that the market is cyclical and has a bear market that will last about a year and a half.
Our next move is to take a step back and look at our current cryptocurrency portfolios and decide if we want to hold, sell or buy more. Bitcoin has lost $1,600 in 24-hours and $20 in market capitalization. When we look at Coinmarketcap, we see all the altcoins have followed suit. Given that this is the seasonal selloff time for Bitcoin and a key psychological price point has been breached ($5,000), we can anticipate more selling. Expect to see $4,000 soon.
What does the future hold for the cryptocurreny market? It looks like we need to hold on for 6-9 more months before historical trends will boost this market. News of further cryptocurrency regulations, market pessimism, lack of institutional investment and a dearth of new adoption will push Bitcoin’s price below $5,000 and possibly below $4,000. Bitcoin is a commodity and is similarly volatile. Those who have participated in FOREX and commodity trading understand the importance of avoiding bearish trends.
In short, please do not purchase now. Hold your coins and expect massive paper losses for 6-9 months. The news will be harsh to Bitcoin and cryptocurrency, so hold and do not listen to the noise.
Follow me on Steemit at @wstanley226 and @dominion01.