The following is a chart of the price of bitcoin from 2011 to present. You will notice how whenever it has had a strong run, it corrects at least -30%.
The chart below suggests the bitcoin ETN GBTC will have to lose roughly half of its value, or roughly trade down to around 6.25, before rising again as it has corrected this much every time bitcoin has corrected by roughly 1/3.
Of course keep in mind that change is the only constant when it comes to markets so don't assume history will always repeat.
This is the most extended bitcoin has been in terms of price at such an early stage of a new bull market. The bitcoin whales have most likely been the culprit behind this latest price boom as they run in the shorts forcing short covering then sell at a profit. Now that the upward parabolic trajectory has been broken, bitcoin is liable to retrace further. History suggests roughly by one-third from peak prices, or roughly $6000.
This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2024 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.
