Bitcoin on its Way Back Up to $10,000. Why?

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Almost immediately after the mania of 2017, the cryptocurrency market turned right around and lost about 60% of its total market value, creating a great deal of uncertainty and anger about the market from Johnny-come-lately’s. Those who had the good sense to get in before Christmas 2017 found themselves still in a good position. However, the news articles talked about nothing but failure. Many even predicted the demise of Bitcoin after scandals rocked some of the exchanges.

After hitting lows of around $6000 US, Bitcoin is now surging back towards $10,000 US. Why? The answer is fairly simple.

The answer also tells us that the cryptocurrency market is likely here to stay. It may have ups and downs that are more volatile than normal markets, but it exhibits basically the same behavior. The patterns follow traditional market patterns that skilled investors will be able to see and therefore predict in the future.

After commercial interest in the cryptocurrency market took it to becoming literally the best investment ever, those same consumer oriented “investors” got out of the market just as quickly as they came in. They took their profits, and with it, a great deal of the fervor that bag holders had that cryptocurrency would continue to go up forever.

News flash – no investment goes up forever.

The quick sell nature of quick profit investing creating a mania in the other direction. Just as quickly as Bitcoin almost hit $20,000 US, it also get $6000 US. Savvy investors simply held and waited. Some of the less lucky investors who got in around $10,000-$15,000 panicked and sold on the low end of the trade.

Basically, the market has shaken out all of the short-term investors on both sides of the trade – those who caused the positive upswing and those who caused the negative downswing. Now that these investors are clear out, the market will begin to behave as it should. Cryptocurrency will also begin to maintain a value that is closer to its actual value in the marketplace, now that all of the emotional “investors” are gone.

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