On this study we quickly examine if Bitcoin's 2018 correction is an unusual phenomenon in financial markets and how it is compared to other industry leaders.
For our example we use Alibaba a reformer in the Retail Industry and Netflix a reformer in Entertainment. We consider Bitcoin to be the reformer in the Financial sector. All assets have fairly recently joined the market scene but revolutionized it, as opposed to similar cases that weren't used like Amazon, Apple or Google that have been around and well established for far longer. Facebook (reformer in Interactive Media & Service) could be used also but its growth was less parabolic.
At a glance we see that all 3 assets enjoyed a parabolic growth since 2015:
After their all time highs, a significant correction followed:
- Bitcoin > 70%, Alibaba > 380% and Neflix > 37%.
It is obvious that such corrections are not uncommon for market leaders/ reformers and on the contrary quite common to industry reformers that have enjoyed a sharp period of extreme growth. Such corrections are typically healthy for the asset's progression. Although of course Bitcoin's correction is almost twice as much and twice as long, we need to consider two facts: It grew prior to this equally disproportionately and also the Financial Sector's market capitalization is twice as big (>$7 trillion) than Amazon's Consumer Sector or even more so Netflix's Entertainment Sector.
So during a common market correction investors as usual need to identify the right time to position themselves for the next growth period.
"he found that oscillations often governed the dynamics of processes..." - James Gleick, speaking of physicist P.H. Richter; Chaos: Making a New Science, 1987, pg. 230. Interesting comparison... Bitcoin lost around 2/3 of it's value, but this is not an uncommon result when large price structures end... This one seems to have run from early 2013 to the high in December 2017. Three primary waves with an embedded 5 wave structure in the last primary. The primary wave points are at 25 Nov. 2013 (high) and 12 Jan. 2015 (BITSTAMP).
InvestingScope
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@btc1019, Thanks for sharing this.
kabbo12
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@btc1019, you are really genius .
asgcorp
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nice review. here's a short-term trade plan in btcusd. buy dips later next week. entry and target - see chart. good luck!
kabbo12
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@niceryders, This is also good
InvestingScope
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@niceryders, Needs to be considered indeed.
MrRenev
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Ye just a healthy correction. Just like Movie pass, the haters cannounced its death but each time it bounced back before.
@MrRenev, Great comparison! A shitty IT company versus a global currency . This guys a genius, thanks. going to sell all of my bitcoin now!
MrRenev
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@toabyt, Lmao this is exactly what I read 5 months ago or so on reddit:
"Comparing a real company with employees a business plan registered with the SEC to a ponzi..." by movipass bagHODLers.
This time it's different thought, just like last time, and the time before that, and the time before that, and the time before that, and the time before that, and the time before that, and the time before that, and the time before that, and the time before that, and the time before that, and the time before that, and the time before that, and the time before that, and the time before that, and the time before that, and the time before that, and the time before that, and the time before that, and the time before that, and the time before that, and the time before that, and the time before that, and the time before that, and the time before that, and the time before that, and the time before that, and the time before that, and the time before that, and the time before that, literally every 3-5 years sicne 1500 XD it's different this time.