I know this was posted by another user earlier today but I waned to add more details to the chart.
Comments
TrendTraderz
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...and we reflect
Ankurjai
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nice analysis my friend
TrendTraderz
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Broke $450. Thought to have been a heavy support area. I think it's safe to say we are entering the fear stage.
RamonOfSouza
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Log scale please
TrendTraderz
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Log scale wouldn't benefit us here. I'm merely stating the uncanny similarities in the charted definition of a bubble and the BTC chart. Read my first reply to see what I was comparing the BTC chart to.
mcambron
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>Problem is you could have made the same analysis with the 2 previous "bubbles" that didn't pop (2011 ans apr 2013). Don't you agree?
TrendTraderz
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Didn't pop? You might want to go back to the 2011 and 2013 charts and re-check your analysis. Don't get confused when you hear somebody call an asset a bubble. Being in a bubble market does not mean the pop takes you to 0. The tech bubble in 2000 popped, that didn't mean tech died in 2000 by any definition I've read.
2011 BTC on MTGox went from about $0.75 to $31.85, then dumped to $2. That's a pop of a bubble in price
2013 BTC on MTGox went from about $13 to $265, then dumped to $49. That's a pop of a bubble in price
aether
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A significant number of tech stock did in fact go bankrupt and thus went to 0 when the tech bubble burst.
Bitcoin can go to zero as well, if it fails to become the dominating standard of crypto-payment that many foresee.
I, for one, anticipate that the deflationary bias that made this extreme rise in value possible in the first place will also be what kills bitcoin. It will never come to work as a stable unit of exchange with that design. The crypto-coin principle will be here to stay though, no doubt about it.
TrendTraderz
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I didn't say it couldn't go to 0, I'm saying the definition of a bubble popping does not represent a market going to zero. It's just an over valuation at current knowledge of future potential coming back to reality. The tech market did not go to zero, the market came back to reality. Bitcoin coming back to reality might mean less interest in it and thus some BTC companies going bankrupt... that has nothing to do with the definition of a bubble in a market.
mcambron
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Agree with you 100% about 2011 and 2013. But isn't the retracement to 520 after a 1250 high the equivalent? And couldn't we be at the same stage as the 200ish price after the 2013 "bubble", ie after that the price skyrocketed again.
I agree with most bearish technical analysis going on. But my guts tell me there could be something different going on here again, as it did in 2013.