I love these comparisons. Over two years ago, I compared the Ethereum chart with Amazon's dump and recovery after the dotcom bubble pop. That was when I was just getting started on here.
This chart compares Bitcoin with AMZN, so you can observe the striking similarities in structure. Amazon is an interesting reference point, considering much of its astronomical price movement is a result of systemic adoption. The same COULD be said for crypto, if things continue in a particular trajectory, without any catastrophic setbacks. Regulation may simply be priced in at this point.
Many people expect this market cycle to play out similarly to the ones before it. This may not be the case at all. As long term confidence is established in an asset, perhaps the corrections become less severe, as people are more eager to buy dips.
The timespan on these charts is clearly different. AMZN took roughly 10 years to break its all-time high from the dotcom boom. That's insane. Bitcoin took 3 years. So let's say things are happening at 3.33x the rate, and let's also say that 2017 was the first "retail mania" for crypto, where institutions took notice, but didn't really begin investing. Since AMZN entered price discovery after 2008, it has not yet tested the 200 week Moving Average (teal). Instead, the 50 and 100 MA's have held as strong support.
Does the same happen for Bitcoin? Please share your thoughts.
This is highly speculative, and not financial advice. Keeping it short for a change.
-Victor Cobra
This chart compares Bitcoin with AMZN, so you can observe the striking similarities in structure. Amazon is an interesting reference point, considering much of its astronomical price movement is a result of systemic adoption. The same COULD be said for crypto, if things continue in a particular trajectory, without any catastrophic setbacks. Regulation may simply be priced in at this point.
Many people expect this market cycle to play out similarly to the ones before it. This may not be the case at all. As long term confidence is established in an asset, perhaps the corrections become less severe, as people are more eager to buy dips.
The timespan on these charts is clearly different. AMZN took roughly 10 years to break its all-time high from the dotcom boom. That's insane. Bitcoin took 3 years. So let's say things are happening at 3.33x the rate, and let's also say that 2017 was the first "retail mania" for crypto, where institutions took notice, but didn't really begin investing. Since AMZN entered price discovery after 2008, it has not yet tested the 200 week Moving Average (teal). Instead, the 50 and 100 MA's have held as strong support.
Does the same happen for Bitcoin? Please share your thoughts.
This is highly speculative, and not financial advice. Keeping it short for a change.
-Victor Cobra
