It’s no secret at all that Bitcoin and the entire cryptocurrency market is down big. Bitcoin is down 80% from last year’s high of $20,000, and the chart shows more pain ahead. The Cryptocurrency market has lost a stunning $700 billion, or the marketcap of Amazon.com and we are about to enter the traditional seasonal low period of the market. What should we do? There are two polarized camps, one that insists Bitcoin and the cryptocurrency markets are doomed and one that insists this is the time to buy and those who do will reap the rewards when blockchain technology sweeps the globe.
Bitcoin emerged from the rubble of the 2008 financial crisis that was sparked by the financial sector. During the crash of 2008-2010, stocks retreated in a deep bear market similar to what we are seeing in the cryptocurrency market. Stocks like AIG, Ford and GE have never fully recovered to the pre-2008 levels they were at before the crash. Looking at past Bitcoin crashes, Bitcoin lost 92% of its value in 2011 and 84% in 2015. The last cryptocurrency bear market of 2013-2015 lasted 600-days. We are approximately 360-days into the cryptocurrency bear market of 2017-2018. Given these facts, it would be unwise to abandon ship and sell all cryptocurrency assets. We are well within historical bonds, and those who have not sold have not lost.
Looking forward, we know seasonal cryptocurrency lows are coming. We see more pain as Bitcoin retraces to lows not seen since July of 2017. November has historically been the best-performing month for cryptocurrency, and in 2018, it has been the worst month. My personal Bitcoin journey began in July of 2017 during a small dip to $1800/coin. I participated in the 2017 runup and became part of a cryptocurrency group in my city. Life was good until the crash in Q4 2017. Seeing your favorite altcoins fall lower daily is part of the rollercoaster ride we in the crytptocurrency community have signup up for. Recently, my cryptocurrency community has become disenchanted with the situation and has become vocal about how bad it will get.
We must hold and take the historical data as solace. Bitcoin is at a 14-month low and has breached below $4,000. The chart is ugly, and indicates resistance around $3,000. If Bitcoin falls below this point during the seasonal low period of December-January 2019, we may see sub $2,500 levels. The prudent thing to do would be to hold all cryptocurrencies and to not begin purchasing more until the seasonal lows end. I would watch the market closely and begin buying when Bitcoin shows a sustained price above $5,000. Please hold and speak with members of your cryptocmmunity about holding. Whales and market makers may deepen this bear market for their own gain to get your coins for cheap.
As always, HDOL! Hold, Do not listen to FUD, Only use logic and charts and do not Lend your ear to unwise advisors.
visit my Steemit pages at @wstanley226 and @dominion01. Daily contests at @voteminer as well.