Prediction based on pure extrapolation and the 50/80 rule
Mark Minervini states when a stock ascends at a steep rate, when it corrects, it can go drop by 50-80% from the ATH (80% chance to drop by 50%, 50% chance to drop by 80%). Based on this, January could see $40k and February could see $30k.
Ofcourse, developments in the news could drastically alter the outcome.
As could the question of at what price will institutional investors be interested, i.e. when will there be a positive spike in prices with an associated high volume of accumulation.
Early rate hikes will have a big impact on stocks, and correspondingly hit the crytpo market harder. However, this is where I believe it will get interesting for bitcoin. Bitcoin being both a speculative asset and a hedge for inflation; which one is it? Two competing realities. The market will ultimately decide this.
Ofcourse, developments in the news could drastically alter the outcome.
As could the question of at what price will institutional investors be interested, i.e. when will there be a positive spike in prices with an associated high volume of accumulation.
Early rate hikes will have a big impact on stocks, and correspondingly hit the crytpo market harder. However, this is where I believe it will get interesting for bitcoin. Bitcoin being both a speculative asset and a hedge for inflation; which one is it? Two competing realities. The market will ultimately decide this.
Comment:
I haven't been watching the stock market, but checking on Mark's twitter feed this rule has been playing out on many of the S&P500 companies. Risk sell off will be brutal for all of crypto (forgot 2020?). This is a wave about to crash. Dive under the wave before it gets you!
Comment:
yep tesla and apple even going down today.. many are pointing out musks face on the time magazine (proponent of dogecoin etc) could be a cryptic reminder of the bubble in 2000 with Jeff Bezos...
Comment:
I should point out this was in Brent Donnely's 'Art of Currency Trading' called trade the cover or soemthing like that.. when Giselle Buchenen wanted to be paid in Euros soon after Euro crashed.. some famous athletes want to be paid in bitcoin.. the point being when something gets so big that it is reaching pop culture headlines then its doomed in a way.