Monday, February 26, 2018

The Rise and Fall (and Rise Again?) of Bitcoin

This wasn’t supposed to happen. As this article is written, Bitcoin is trading around $11,200. It’s up from breaking the $6,000 barrier, but this could well be a dead cat bounce. That’s down from nearly $20,000 in mid-December. After all, everyone knows that Bitcoin only goes up.... just like the stock market and housing prices. What gives? What’s happened in cryptocurrencies was completely predictable. In fact, I wrote an article about this very scenario back on December 25, 2017. Bitcoin and all of its Johnny-come-lately followers are in for some more tough times ahead. If it retraces 80-90 percent of its gains the past year, that will put it in a range of $3,800-5,600. Such a pullback would not be out of the realm of experience. When a bubble pops, it’s look out below. [more...]

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