Have we just witnessed another Bitcoin crash and could we have predicted it?
History, (which has a habit of repeating itself) has shown us that the month of January is notoriously the worst month for holders in the crypto market and it seems that ever year, we go through another “bitcoin crash”.
The light at the end of the tunnel? Well, if we can draw some positive news from studying the trend of Bitcoin over the past 3 to 4 years… the worst may just be over and it’s onwards and upwards from here on in.
Bitcoin Crash – Rinse and Repeat
Our story dates back to the 4th December 2013 where Bitcoin was pumping reaching an all-time-high (ATH) of around $1152. Then 2014 kicked in, and it was a disappointing year in terms of the price trend which continued to fluctuate.
In general, signs of a bear market were clearly evident. By the 14th January 2015, Bitcoin bottomed out at around $170.
Fortunately, for Bitcoin and other cryptocurrency holders, the downward trend seemed to have taken a turn and 2015 as a trading year proved it.
By the end of the 12 months, around mid-December 2015, Bitcoin was valued in the region of $465 – a gain of over 273% from the start of the year!
Then, the festive season hit.
For some of us, we were not so jolly as the price of Bitcoin once again plummeted in 4 weeks to $360 by the 15 of January 2016. Can you see the pattern starting to form?
2016 showed a much less volatile upward trend and after the low of $360, the value of Bitcoin continued to rise by 315% to reach an annual high of $1138 by the end of the year once more. Then, as predicted, January hit us again.
Consumer spend is at an all-time low and Bitcoin as a result, bottoms out once more on the 11th January 2017 at $778 – a 68% free-fall in less than a week!
Then the year of Crypto – 2017. We witness the interest in cryptocurrency explode through social media, mainstream news channels, even our friends down the pub are talking about Bitcoin and Lamborghinis. This sends the value skyrocketing (to the moon) to an ATH punching above $20,000!
But wait for it… once again – the January blues. The end of 2017 marks the first annual decline in consumer spending in 5 years.
There is no hiding from it. Like a bad hangover from the night before, depression steps in right on cue to knock the wind out of Bitcoin’s sails once more.
Today, the 17th January 2018, Bitcoin crashed to beneath £10,000.
In conclusion, looking at the charts from a completely non-technical point of view – isn’t it obvious that January is just a terrible month for Cryptocurrency?
From another perspective, when we zoom out the charts it makes the last 3 crashes seem inconsequential to the current price of Bitcoin… onwards and upwards we are predicting!
And, if we base our decisions on our learning from the past, wouldn’t right now (like today) be the best time to get some Bitcoin?