new img advantage img Cryptosomniac Advantage
Latest News >>> US Presidential Candidate and former ICO-enthusiast, John McAfee, has declared a ‘hard date’ for a bitcoin price of $1 million. This followed a prediction of “$1 million… someday” by Jesse Lund, vice…      >>> Twitter Facebook reddit Pinterest Hacker News LinkedIn Tumblr Google+ VKontakte Hello, Everyone! Hope everyone had an incredible time hacking at ETHDenver this past weekend! The event was an…      >>> The Dow and U.S. stock market rebounded sharply on Friday, as President Donald Trump prepared to greet China’s top trade negotiator following a week of negotiations in Washington. Dow Roars Back to…      >>> Profit without the usual trading chaos as a social trader We all have to start somewhere, and trading is not an exception. Nevertheless, amateur traders with little to no previous trading experience…      

Bitcoin Historical Corrections & What We Can Learn

12/14/2018
Cryptosomniac Advantage

Much like any market, Cryptocurrency is subject to market corrections.  Last year, Bitcoin saw it's all time high of nearly $20,000 USD.  It would be foolish to think that after experiencing such a dramatic increase in price last year, a price correction would not only be necessary, but actually help create stable footing for it's price in the future.  This is not uncommon though, no matter how bloody your wallets feel right now.  In fact, this correction hasn't been as bad as previous ones, at least not yet!  Let us take a look at some of the Bitcoin historical corrections.

Bitcoin Historical Corrections
  • 2011: 93%
  • 2014: 86%
  • 2018: 83% (so far)
Bitcoin Historical Corrections
2011 Correction

Bitcoin's first major correction occurred in 2011.  It made a entrancement of over 93% during its early days.  Back then, Bitcoin was not well known and used primarily on dark net sites for illicit services and drugs.  It made a rampant move from below a dollar to about $30 inside of several weeks.  Afterwards, excitement waned and Bitcoin was labeled a faulty monetary system used only for illegal activities and bottomed out at around $2.00.   


2014 Correction

In 2014 Bitcoin suffered a severe setback.  This was due largely because of the Mt. Gox Heist that left Bitcoin users with little confidence in the ecosystem.  At the time, Mt. Gox was the largest operating crypto exchange in the world, handling over 70% of all Bitcoin transactions.  Mt. Gox filed for bankruptcy in early 2014 after having lost over 850,000 Bitcoins valued at $450 million dollars at the time.  Most of the Bitcoins were eventually found to have been stolen over a period of time dating back to 2011 from the exchanges hot wallet.  



Mt. Gox

Before the Mt. Gox debacle, Bitcoin breached the $1,000 mark.  Afterwards, and for most of 2014 Bitcoin slowly declined bottoming out at a price of around $160.  It would remain such for most of the year 2015 before picking up speed in 2016 and 2017.

  

2018 Correction

2018 brought an end to Bitcoin's best year.  Cryptocurrency garnered widespread attention, multiplying in price several times during the year of 2017.  Many ICO's launched and prompted users to purchase more Bitcoin as it was the primary "on-ramp" for investing into other altcoins and cryptocurrencies.  The price of Bitcoin reached almost $20,000 catching the eyes of fortune 500 companies, the SEC, and people all over the world.  


Bitcoin Comes Crashing Down

Bitcoin has retraced about 83% from it's all time high and has recently stabilized around the $3,400 mark.  Unlike previous crashes, BTC's current price is likely due to a compilation of several things.  Bitcoin shorts launched late in December of 2017.  The SEC started cracking down on formal regulations for many ICOs, spawning the creation of the more regulation Security Token Offering (STO).  Furthermore, user design and advances in the technology appear to have been far behind what the price reflects. 


Essentially, Bitcoin's current price should not come as a surprise.  If we are to learn anything from Bitcoin historical corrections, this is completely normal and to be expected. Markets are cyclical and should be expected to repeat themselves.  


Looking to the bright side though, it appears we may be close to our bottom given we have retraced 83% of the way, which is comparable to some of the other corrections we have seen.  Please remember to take a breather, and realize that the blockchain industry is not leaving, but prices of cryptocurrency may not increase in value at the rate you desire them to right now.  But let us hope that 2019 turns things around!

 

Stay Informed, Sharpen Your Skills

We monitor conditions and report what the charts indicate, stay up to date with our latest Technical Analysis, trading techniques, and what projects we're interested in by joining our FREE DISCORD SERVER. 

Join the community for serious crypto traders, stay as informed as you can, see you in the Moon Lounge!


Disclaimer:

Information provided by Cryptosomniac, LLC is not intended to be utilized in making any financial decisions and are not a solicitation, nor recommendation to buy, hold, and/or sell a particular product,  digital asset, or ICO. Cryptosomniac, LLC website, newsletter, email communications, and discussion groups/chats should be used at your own risk. Opinions expressed by Cryptosomniac, LLC are based on personal experience and do not claim to guarantee any results, nor do they imply a recommendation. 

You can access a full review of our disclaimers and terms of services Here:  https://www.cryptosomniac.com/terms-of-services/