Digital Currency Revolution Series: Reminiscences of Bitcoin's Booming Cycles

Bang on.. Year-2019 has been conducive for bitcoin miners, exchanges, traders and investors (i.e. 268%).

Hats off, you crypto-aspirants and incredible institutions ...!

This morning, when I tend to look at the prevailing price action and correlate that with the underlying fundamental developments that took place in the recent past, I tend to refresh the reminiscences of debt crisis during 2008 that is portrayed in Big Short movie.

No Central Banks' stringent actions (be it banning or something else), no Regulatory Hindrances, no Hanging Man, no Shooting Stars, no Gravestone Doji, not even a bloody Resistance or Fibonacci retracements, no history repeats or any other fancy quotes, no intrinsic value, no EPS, no PE ratio, no SEC, no SEBI.

Having said that, we aren’t belittling all these conceptual methodologies, ultimately, the price matters. 

"Only Trend is your friend, never buck the trend & BTC has been a trend setter with a mammoth close to 270% returns just in a span of 6months approximately."

Take a quick glance at BTCUSD price since its inception:

Cycle 1: Spiked from 20/30 cents in 2008 to $11.85 in August 2011.

Cycle 2: Tumbled back to $2.25 in November’2011, shoot up again to $165.10 in April’2013.

Cycle 3: Bears resume again in January’2015 with steep slumps up to $152.40 levels, but bulls were back in business, skyrocketed back up to all-time highs of $19,666 levels.

Cycle 4: Recently, it dipped to $3122 in 2018, but jumped again to $11,500 areas so far in 2019.

You can compute how much it spiked in percentage terms, that is 3850% in cycle 1, 7237% in cycle 2 and 12804% in cycle 3, is it luring.

We are amazed by this luring factor but perplexed about the magic of this cosmos, we wonder too as to why can't someone empathize such a “price swings are quite natural in booming cycle when an industry is evolving”, one should understand industry lifecycle before jumping the guns, we kept reiterating and we do the same again.

At times, too much analysis leads to paralysis. When all it matters is ROI, pessimists look at blood bath when it tumbled from all-time highs of $19k mark to 4k, but do not want to care a damn about the other side of the coin when it was advocated when it was oscillating between $400-$500 range & the prevailing price is $11.5k. Rest everything is history. Bingo..!

Overall, Bitcoin should undoubtedly be grateful for year-2008, 2017, 2019. We run you through why these 3-years are significant for bitcoin in our upcoming posts.

For more readings, go through my historic write-ups by following below weblinks:

Currency Strength Index: FxWirePro's hourly BTC spot index is inching towards 166 levels (which is highly bullish), and hourly USD spot index has bearish index is struggling at -139 (bearish) while articulating (at 05:35 GMT). 

For more details on the index, please refer below weblink:

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