Having broken out of a descending wedge ,
BTC
continues to fall downwards — but how far will it go?
The first key resistance is at $6,000, which was the lower limit for the descending wedge pattern that followed the previous bubble. We will be looking to sell down to this point and then watch for any indication if the price will pick up or continue downwards.
Below that there is a further steep drop to $3,000, which was last year's low and the point at which the bull run that ended with the all-time high began towards the end of 2017. It is unlikely that we will see a drop below $3,000.
Under the hype and bubbles, we can track the general trend of BTC , which we expect to rise gradually over time, in keeping with BTC's tokenomics. Charting out the baseline growth in value since the inception of Bitcoin gives as a price indication of around $5,500 as the current true value. Of course, the price (as with any price) may dip beneath the 'true' value — and the concept of true value itself is difficult. However, keep in mind that BTC has never gone below what its underlying value is on this estimate, even as bubbles have burst previously.
This true value concept supports the notion that the target low will be $6,000 or just below, and not $3,000. However, we will need to watch for indications at the $6,000 mark.
Anyone telling you that this is the time to buy more BTC is either mistaken or a Bitcoin evangelist looking to spread the gospel across the market and boost prices on hope and prayer, but not on value. These are the people we need to be most cautious of and who are the reason that this asset ever entered any bubble phases
BTC
continues to fall downwards — but how far will it go? The first key resistance is at $6,000, which was the lower limit for the descending wedge pattern that followed the previous bubble. We will be looking to sell down to this point and then watch for any indication if the price will pick up or continue downwards.
Below that there is a further steep drop to $3,000, which was last year's low and the point at which the bull run that ended with the all-time high began towards the end of 2017. It is unlikely that we will see a drop below $3,000.
Under the hype and bubbles, we can track the general trend of BTC , which we expect to rise gradually over time, in keeping with BTC's tokenomics. Charting out the baseline growth in value since the inception of Bitcoin gives as a price indication of around $5,500 as the current true value. Of course, the price (as with any price) may dip beneath the 'true' value — and the concept of true value itself is difficult. However, keep in mind that BTC has never gone below what its underlying value is on this estimate, even as bubbles have burst previously.
This true value concept supports the notion that the target low will be $6,000 or just below, and not $3,000. However, we will need to watch for indications at the $6,000 mark.
Anyone telling you that this is the time to buy more BTC is either mistaken or a Bitcoin evangelist looking to spread the gospel across the market and boost prices on hope and prayer, but not on value. These are the people we need to be most cautious of and who are the reason that this asset ever entered any bubble phases