Topic: Understanding corrections and why not to panic. - page 3. (Read 935 times)

Ok, so for me as a huge blockchain enthusiast, nothing annoys me more than seeing all this FUD from new members or traders.
I've tried to demonstrate through a simple ms paint picture, taking an example of another correction to explain.



Now as we can see, between Nov 20 2016 and Jan 05 2017, we had a 62% increase in about 3 and a bit weeks, to a lot of investors this is worth cashing out over, great returns!
The value then dropped around 34% from $1170 to $767 on the 12th of Jan 17, it then took till the 22nd of Feb to return to this value of $1170, around 5 weeks! this is the period where panicked people continue to sell due to the dip.

Now from the $767 price at the dip in Jan, it took around 3 months to hit a new high around $1250 with around 62% increase, this is more sustainable than the earlier rise of 61% in 3 weeks.. so what do we see? of course another correction but a much shorter one, why? the period of growth was slower, more sustained so the incentive to cash out is lower compared to 61% in 3 weeks.

Now if we look what has happened recently, Bitcoin went from $6000 in mid November 2017 to $18,000 in mid December 2017, this is a 200% increase in 1 month!
So what happens? once again people see a chance for a huge profit and cash out.

Now $18,000 to $10,000 is a 44% drop, after 200% in 1 month is this really surprising? not at all..
Based on what we've seen, the recent jump will cause a larger than normal correction, this is what we're seeing now.

I can't tell you how long this correction will last but my gut says it'll go a bit longer, am I in a panic? no way, everything's on sale!

I hope this brings a bit of calm to some, I've used BTC as an example but the same concept applies to all coins and the entire market value.

I also have a strong feeling that bitcoin will reach $25k price, maybe next two months we will see the price  starting to  go up again heading $25k  as what some people predicted.

so time to buy more?

I agree with the thread poster, it is normal market cycle and no need to panic, i can feel how people that bought the peak in last bull market will be feeling right now, but it is just a game of nerves, market will be back so do not sell in big loss now.

Hard to say, the idea of this was to explain why things are still sound and stable, rather than to predict the next jump.
No reason why we can't see it hit $25k in the next 2-3 months though, but I think we could go to $8000 first, to sell under this price you're either a long term holder who's giving up at a bad time, or just a panicked person, just an opinion, not fact.

Will you compensate the people if they lose everything what they have invested by holding the wothless crypto by your useless suggestion?

Will you compensate the people if they lose everything what they have invested by holding the wothless crypto by your useless suggestion?

So you meant to say next jump will be $25k

So you meant to say next jump will be $25k