Topic: Slumps To Rallies (Read 209 times)
I heard news about bitcoin being a bubble since the price was $1000 and now the price is already $8000 that bubble haven't burst yet. Bitcoin already proved itself that it can overcome such news that is why you will really think twice to consider bitcoin as a bubble.
I just watched some videos on YouTube with some famous personalities warning one and all about the coming bubble burst for Bitcoin as they tried to compare what is happening right now with the dotcom and stock crashes in the past which left many people holding empty bags. I am actually open-minded even to opposing ideas and I have no problem listening to opinions contradictory to what I believe in as long as I have time to peruse them.
I just noted in one article that Bitcoin had risen 700% more or less this year alone and that the past three dips or slumps (had it been stocks they can already be big crashes) of more than 25% have all instead given way to rallies. This is one of the most defying characteristic of Bitcoin. Why? Bitcoin retreating 20-30% less is just a normal thing and nothing to be alarmed...this is not true with other investment vehicle like forex or stocks.
The reason is that when there is a dip, there are many people who can be so happy to buy more and this speaks about the confidence and trust many buyers are bestowing to Bitcoin. And as long as there is that confidence for the good future of Bitcoin, its value will continue to rise.
Dotcom bubble and bitcoin can't be compared as far as I'm concern. That's why all TA is not applicable as well to the bitcoin market. And if you have been here for the last year of so you will understand that the slumps are just part and parcel of how this market works. The last slump, bitcoin floor price is $5500-$5600 and look at how it recovered. Prices is above $8000 and there's no other market out there that can recovered from that kind of crash. And you are correct in you assumption that people do really love to buy in those dips, making the price rebound again. Its one factor that stock people can't really understand. And that is the reason as well why the dotcom bubble never recovered, investors didn't buy them back when they are cheap and at a discounted price.
I don't think that anyone could compare bitcoin to the previous bubbles. Those previous bubbles has one thing in common that is that they are offering a product to their customers while bitcoin is not offering anything. What it offers is the power to buy those products. It is a currency.
I'm not certain if the term slump applies to bitcoin price declines.
The term slump usually describes a decrease in performance. When bitcoin's price declines it often implies someone sold a lot of btc due to their expectation that the price wouldn't go much higher. Its not so much a slump as it is early adopters cashing out or deciding to shutdown their crypto business in favor of using the earned capital to start other ventures.
On some level perhaps people recognize this. And so the decline of crypto isn't a cause for major concern with price movements not being caused by any fundamental metric which could be measured and found to be diminishing.
The term rally could also be misleading for similar reasons. Just some food for thought.
The term slump usually describes a decrease in performance. When bitcoin's price declines it often implies someone sold a lot of btc due to their expectation that the price wouldn't go much higher. Its not so much a slump as it is early adopters cashing out or deciding to shutdown their crypto business in favor of using the earned capital to start other ventures.
On some level perhaps people recognize this. And so the decline of crypto isn't a cause for major concern with price movements not being caused by any fundamental metric which could be measured and found to be diminishing.
The term rally could also be misleading for similar reasons. Just some food for thought.
Help anyone please? I need to know what are slumps and what are rallies.
Seriously? Slumps are price decreases, rallies are price increases. They're quite literal in this context.
On to the topic at hand, I do agree that past precedents don't necessarily apply to Bitcoin. It continues to break expectations and sharp drops are usually met with all time highs with lots of people waiting for an opportunity to buy the dip. I also wouldn't compare it to the dotcom bubble. That only lasted for four years, and the amount of money poured in was more than 10x our current market cap. Bitcoin is proving to be far more sustainable.
Bitcoin is the first of its kind so its growth can't really be conclusively compared with anything else's.
Help anyone please? I need to know what are slumps and what are rallies.
Seriously? Slumps are price decreases, rallies are price increases. They're quite literal in this context.
On to the topic at hand, I do agree that past precedents don't necessarily apply to Bitcoin. It continues to break expectations and sharp drops are usually met with all time highs with lots of people waiting for an opportunity to buy the dip. I also wouldn't compare it to the dotcom bubble. That only lasted for four years, and the amount of money poured in was more than 10x our current market cap. Bitcoin is proving to be far more sustainable.
Bitcoin is the first of its kind so its growth can't really be conclusively compared with anything else's.
Help anyone please? I need to know what are slumps and what are rallies.
Yup and because people will continue to believe in it and put value on it this "bubble" so to speak could last anywhere from a few months to a few years and beyond that even. That is why I never bought into the bubble hype
on bitcoin I just think the concept applies how it does to other markets. Not saying bitcoin isnt in a bubble trying to say this bubble is very different from what we have witnessed in the past dont be surprised by what occurs!
on bitcoin I just think the concept applies how it does to other markets. Not saying bitcoin isnt in a bubble trying to say this bubble is very different from what we have witnessed in the past dont be surprised by what occurs!
I just watched some videos on YouTube with some famous personalities warning one and all about the coming bubble burst for Bitcoin as they tried to compare what is happening right now with the dotcom and stock crashes in the past which left many people holding empty bags. I am actually open-minded even to opposing ideas and I have no problem listening to opinions contradictory to what I believe in as long as I have time to peruse them.
I just noted in one article that Bitcoin had risen 700% more or less this year alone and that the past three dips or slumps (had it been stocks they can already be big crashes) of more than 25% have all instead given way to rallies. This is one of the most defying characteristic of Bitcoin. Why? Bitcoin retreating 20-30% less is just a normal thing and nothing to be alarmed...this is not true with other investment vehicle like forex or stocks.
The reason is that when there is a dip, there are many people who can be so happy to buy more and this speaks about the confidence and trust many buyers are bestowing to Bitcoin. And as long as there is that confidence for the good future of Bitcoin, its value will continue to rise.
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