Having crashed down 80 percent from its peak, the bears don’t seem to have any end in sight. According to experts, the bottom might be near, however, this is time for accumulation as bulls can’t be expected to enter immediately after bears’ exit.
What’s Different about this Bitcoin Crash?
Bitcoin is currently trading at $3,900, 80 percent down from its peak while altcoins have tumbled down 90 to 95 percent from their all-time high (ATH). This has resulted in the wipeout of about $700 billion from the total market cap.
This is not the first time Bitcoin or crypto market has crashed as put by the founder of Weiss Crypto Ratings,
“Since Bitcoin began trading actively, it has plunged by 70% or more on four separate occasions. Each time, people wrote its obituary. And each time, Bitcoin rose from the dead, rising by an average of 6,300% from low to peak. Now, Bitcoin has declined by more than 70% again, setting the stage for another major price rise likely to begin in 2019.”
But what exactly is different this time, Weiss says,
“There is one important difference this time: Bitcoin has not kept up with the latest advances in the Distributed Ledger Technology (DLT) that underlies cryptocurrencies. It will continue to play an important role, but primarily as a store-of-value commodity akin to gold. In its place, a select group of faster, more scalable cryptocurrencies will lead the way both in terms of price appreciation and innovation.”
Is the End of Bears Near?
Mike Kayamori, the chief at Quoine says,
“If there are enough miners [that] are going out of business, that [means] equilibrium is near. When you look at how markets overshoot, both up and down, you can probably say it’s close to the bottom.”
Popular trader, Crypto Dog took to Twitter to share that “currently, bears are in control,”
“To investors looking for a signal in all of the noise:
It is my opinion that Bitcoin is in the final stages of this bear market. I expect the price to range between an absolute low of $2000 to an absolute high of $6,200 (more likely, $3000-5400) for a substantial period of time.”
However, he further shares,
“There is no reason to expect Bitcoin to rapidly enter a bull market from the bottom, it will take time. This time presents an incredible opportunity to begin to average into a position for the next bull cycle.”
According to him, this is time for accumulation,
“There is no rush to buy all of your Bitcoin this very moment, but today IS a great time to begin accumulating Bitcoin as a long term investment. I look to mid 2019 and the 2020 halvening as a fundamental catalyst for further bullish momentum.”