Bitcoin Analysis – December Drop

A Merry Christmas was not what many were having, with the top cryptocurrencies falling drastically in price in the last 5 days. Ridiculous rumours of Bitcoin being a bubble, and alt coins slowly being a hoax started making the rounds. Sit still, and have a Merry Christmas! As according to past data Bitcoin was the price people would want to buy at and a major correction was needed for the eventual burst in hiking of the price.

Bitcoin Analysis - December Drop
Bitcoin Analysis - December Drop
The current price is at $13,682 at 11:53 IST. This is a major fall of almost 30% from the 18th and 19th of December where the price of Bitcoin was touching record high $19,000 mark. Noticed in the charts is a drop in prices from the 20th of December which outraged a correction. It dipped to correction levels of approximately $10,800 on the 22nd of December.
This is not a sign to panic sell, but can be taken of as an advantage of buy. Think of it as a Christmas present to yourself. According to past data, it is seen that a major correction takes place for a surge in price.
This is seen to be the biggest corrections ever seen in cryptocurrency till date. Best viewed is the tweet by Coindesk in terms of Bitcoin price correction in historical context.
    Today’s bitcoin price correction in historical context (Data via CoinDesk BPI)
    — CoinDesk (@coindesk) December 22, 2017
Analysis 2
Observe how there have been five corrections from September 2010 to December 2017.
The latest was in September where it nudged an all time high of $5,000 and lost nearly 40% in a major crash. 3 days later it rose above $4,000. The major reason at this time was Chinas probable ban on cryptocurrency. 
It is very apparent that Bitcoin takes most of the cake when it comes to swings, and tumbles of major losses which can make people fear the worst…a bubble!
Speculative run ups are noticed right after bitcoin crashes and hence this bounce is the most likely scenario after the crash at the end of year 2017.
Let the Bitcoins be jingling your Christmas into a very Happy New Year!


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