Early this morning Bitcoin futures chart plunged to a new record low of 11,900. There should be more downside coming, but so far it has been a choppy decline that looks like it may be a diagonal “C” wave. Usually there is a much bigger pattern difference between the “A5” wave and the “C5” wave. For all this Bitcoin Mania to be in this true blue price bull market that so many claim is going to happen, we need a strong visible zigzag or flat correction.
I won’t even throw out the triangle pattern as any correction will just about do. Sure, a big jump could happen at any time, but Bitcoin seems to be on a downward spiral that nobody knows when it will end. Cryptocurrencies are being attacked around the world so I can see the lack of bullish enthusiasm for the Bitcoin price.
What happened to buying on the dips of this no brainer bull market? After all, isn’t the Bitcoin price supposed to go to a $1,000,000? Back in the 70s the experts were all forecasting the $2000 gold price, yet it never reached that price level. Instead gold turned into a 20 year bear and a crushed price.
Investors didn’t learn anything at that time and they sure did not learn anything this time. Most price forecasts are a figment of one’s imagination, as they are just numbers picked out of thin air.
A quick scan of my Crytocurrency list shows the “majority” of all the Cryptocurrencies took major price hits this morning as well. It’s not just a Bitcoin problem. There are 1450 cryptocurrencies posted, with a total market capital soaring to over $720 billion US dollars. Well, this morning about $140 billion of it went up in electronic smoke. All those investors that just borrowed money to jump into this mania are now holding worthless paper. We can’t even call cryptocurrencies “paper”, but it still took paper dollars to buy into digital coins. In todays world, it’s electrons that go up in smoke much easier than paper can, at least with paper dollars you can use it as toilet paper once it crashes. These numbers are changing very fast as latter this week $200 billion could be lost. There is a lot of money somewhere in the “Lost and Found” department. Good luck finding it as the, “Pot Of Gold” at the end of the Rainbow contains no digital coins.