Bitcoin on the whole has been and looks to be in a long-term bull market. Clearly the general direction is ‘up’, with the occasional, expected dips which are always followed by quick price recovery. This unending uptrend is not unconnected with the reason why more and more bitcoin naysayers are sprouting up every now and again. Little wonder why some bankster-backed personalities make news headlines with statements describing and associating bitcoin with ponzi schemes, scams, fraud and bubble-like characteristics. At the same time there are numerous statements from the non-apologetic bitcoiners with unending positive statements. This back and forth, market dominance feud is normal.
It is healthy for the market. Questions are, ‘who is dominant?’, ‘Who do we believe?’. Do we believe the naysayers and disregard bitcoin or do we follow blindly all the good headlines and public statements?
Truth is we must strike a balance between the two extremes. We must be able to discern and see things for what they really are every single time.
Firstly bitcoin is usually heavily over-bought and most often in a parabolic trajectory. This is an indication that demand holds high, very high. Elementary economics teaches that price is determined by two main market forces-Demand and supply. Right now and in the immediate time past, the rate of increase in bitcoin supply is fairly steady compared to the rate of increase of demand. This means one thing, price increase! This is clearly evident from the above chart from 2016 to Oct 2017.
Without going into much technical analysis, bitcoin, in my opinion, is due for another significant dip in price for the year 2017. It is about time and it’ll be wise to be ready for it rather than be caught unawares whilst trading. A fall in price is is a trader’s holiday. He sells the top and buys the bottom. Buy low, sell high, right? More advanced traders take advantage of this situation by executing a short trade.
The first dip started on June 12 and maxed out on July 16; a process that took 5 weeks. The second dip occurred between September 2nd and 15th. The MACD oscillator as expected declined with these dips.
Today, 29th of October, the MACD is on a decline (it has been on a decline for days) and is expected to dip significantly in the coming days and weeks. This is normal and healthy for the market’s natural price regulation mechanism between the bulls and bears.
Based on this natural cycle and frequency, bitcoin price is expected to fall significantly to about US$4200 between now (29th Oct. 2017) and the 15th of November 2017. This is not a crash! It’ll just be a normal pullback by the market in preparation for the next bull run to new all-time-highs of, who knows, maybe between $7,200 and $7,500 in December 2017.
The above forecasts are based on simple trend-time analysis with focus on fib lines and MACD. Not guesses. I may be wrong or slightly off with the figures though but one thing is for sure – a BTC price dip is imminent.
Disclaimer: Please ensure to do your own research before trading any cryptocurrency. The above article is the author’s person view and should not be taken as trading advice. Price projections contained therein are intended for informational purposes only and should not to be taken as investment advice.