Topic: Understanding corrections and why not to panic. - page 4. (Read 935 times)
So you meant to say next jump will be $25k
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'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.
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