* When price goes way above the intrinsic value -> it enters a bubble
* When price goes way below the intrinsic value -> it enters a reverse bubble
Reverse bubbles are more common than you'd think but since their burst is not as catastrophic as the bubble bursts they go unnoticed. For example in a bubble like what we had at the start of 2018 price dropped the bubble pop from the peak ($20k) down to more realistic level of about $8k in only 4 weeks, and that's a massive bubble that popped not a small one.
We've had many reverse bubbles too. The biggest one was at the end of 2018 that "reverse popped" after 5 months.
The most recent example is from early 2020 when out of nowhere with a large FUD campaign price went as low as $3850 and this reverse bubble took about 5 weeks to reverse pop.
Now we're in yet another large FUD campaign and a moderately large reverse bubble with its bottom at $30k. How long is it going to take for this reverse bubble to reverse pop?
A little comparison of the two recent reverse bubbles:
