One could say that what we are experiencing lately with cryptocurrencies and especially with bitcoin is the third revolution of this new economy that is sweeping everything in its path.
If we look at the bitcoin price chart with its monthly fluctuations from the distant 2014 until today we can limit the peak of the first outbreak in December 2017 (reached about $ 20,000) the second in June 2019 (then high at $ 13,800) and the third wave – on which we are now – began in November 2020, reaching an impressive of $ 64,900 last month.
Certainly this price fluctuation that yields well over 300% in six months (!) can not be easily interpreted with the classic tools of technical analysis. Under no circumstances could such a huge wave be predicted. This race is interpreted with other kinds of analyzes that, apart from economic ones, I would say that sociological approaches that study mass behavior are also necessary.
April marks the begginning of a great correction?
Last April, while it was the first to close with losses for bitcoin after the frantic upward trend from last winter until now, gave a new continuous high at 64,900 as mentioned above.
For many, and for this very reason, April marks the beginning of a great correction. However, the truth is that the “driver” of the cryptocurrencies after the strong downward trend in the period between 14 – 25 April where he lost almost 30% of the value follows a respectable course until today (May 6) and a new surprise for new higher levels is not ruled out in the last spring month.
This is exactly what I want to point out… That this new market has entered our lives with great intensity and maybe our predictions and expectations based on the traditional reasoning about “that goes up, goes down” may raise more discussion than the .. normal for this digital good.
I certainly do not think that bitcoin and the cryptocurrency market in general will go up forever, but we are witnessing the birth of something completely new in the world economy that most of us do not fully understand and it is good to be careful in our estimates until they stop the upheavals caused by something so great.
Let us not forget that the element of upward surprise that prevailed had to do with the intensity of the phenomenon and it does not seem clear at the moment that its duration is over.
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