Choose your Reason!

As Bitcoin goes lower there are many potential bearish reasons speculators can foresee. Do you think Bitcoin can go much lower? Bitcoin has already disrespected all major supports and has shown almost minimal signs of reversing the bear market. The potential for a long-term bear market is growing strong!

Comment:

In finance, the greater fool theory suggests that one can sometimes make money through the purchase of overvalued assets — items with a purchase price drastically exceeding the intrinsic value — if those assets can later be resold at an even higher price.

In this context, one "fool" might pay for an overpriced asset, hoping that he can sell it to an even "greater fool" and make a profit. This only works as long as there are enough new "greater fools" willing to pay higher and higher prices for the asset. Eventually, investors can no longer deny that the price is out of touch with reality, at which point a sell-off can cause the price to drop significantly until it is closer to its fair value, which in some cases could be zero.

Comment:

The gambler's fallacy, also known as the Monte Carlo fallacy or the fallacy of the maturity of chances, is the incorrect belief that, if a particular event occurs more frequently than normal during the past, it is less likely to happen in the future (or vice versa), when it has otherwise been established that the probability of such events does not depend on what has happened in the past. Such events, having the quality of historical independence, are referred to as statistically independent. The fallacy is commonly associated with gambling, where it may be believed, for example, that the next dice roll is more than usually likely to be six because there have recently been fewer than the usual number of sixes.

The term "Monte Carlo fallacy" originates from the best known example of the phenomenon, which occurred in the Monte Carlo Casino in 1913.

Observe the market with this concept in mind. There is no such thing as "the big drop before the pump" The price can continue falling much lower.