Last week Bitcoins made a move down that looks like a zigzag and part of a potential diagonal. I will keep my 4th wave top in Minor degree but, I’m also exploring that the 4th wave can turn into an “A” wave. Any “B” wave decline from an “A” wave would contain a drop much steeper than anything we see at present.
Sure, I have a very bearish outlook on Bitcoins and all Cryptos but Bitcoins is in a bearish phase from which it may never recover from. I don’t think all those that love Bitcoin don’t even know what a bull market is? A crash from $20,000 to $6000 in 5-6 weeks is not a bullish phase, folks! In order for any asset class to be even close to a bull market, they must consistently display higher lows. Do we see higher lows in the Bitcoin patterns? Not really because Bitcoin “has” to travel well above $20,000 to still be in a bull market.
Some have even declared the Bitcoin correction over, and if it’s over than higher lows show prevail. Since the major top of $20,000 Bitcoin has not created higher lows that I can see. They are still pumping out the new ICO’s and we were at 1578 as of this morning. Until that number slows down or even shrinks, then the Bitcoin Mania is still alive.
The total capitalization of the Crypto world is running at $325 billion, and not going anywhere fast. This works out close to about $490 billion that has gone up in smoke! The electrons that are left are buried in a digital graveyard somewhere.
I think Bitcoin will head well below $6000 and then we will run into cost of mining issues. Any analysts should know what happens when the cost of production is much higher than the product you are mining! Sooner or later all the so called Bitcoin investors will get tired of Bitcoins not going up and they could also sell out in disgust.
The markets are in turmoil and Bitcoin seems to be doing the same thing.
I may only have the time to look at Bitcoin once a week, because other markets are much more important. The Crypto world is just too small to take down the rest of the world.