The January slump....
Here is a case study on Bitcoin for the month of January going back three years....
Sorry to burst the bubble of the conspiracy theorists out there but there isn’t a bogey man coming to get Crypto in the middle of the night, just Jack Frost playing with us.
We saw a peak up to $1138 on JAN 4, then a rapid pullback down to the low of $750 seeing a decline of $388. So the decline was 34% off the top line.
After finding support around the $900 mark it then went on in a relatively straight trend line up to a new all time high by MARCH 3 of $1293. An increase of $155 (13% increase) with in two months.
It only actually took less than a month - by a couple of days- to recover to the value we saw at the turn of the 2017 new year.
This year actually has some similarities with the end of last year... there was a raise up in November and then a big correction. But for now I’m sticking just to the first quarter of 2016.
On JAN 8 the correction began. Dropping from $463 to $390 a drop of $73 ( -15%). However this recovery took a lot longer to play out and to set a new all time high took until JUNE 6. Yes I know this is a very long time in the crypto world!
However if we roll back the clock a little further to the November of 2015 this paints a bit bleaker of a picture.
A new All Time High happened on NOV 4 hitting the $500 mark, then proceeded to to drop to a low of $292 losing $208 (-41%)
From this time point it took around 8 months to hit a price point higher than this. *NOTE* I am not intending to be the harbinger of DOOM! I fully believe that Cryptocurrencies will recover far quicker than this as now there is so much media coverage once the recover starts there will be many people rushing back to make easy money!
I am going to go into more detail going back a couple more years... but I know that the Crypto scene was VERY different back then to what it is now so it become less relevant.
The main take-away that I want everyone to take away from this is... Cryptocurrencies recover, it may take a while... but it gets there!
Personally I think that come the end of February we won’t even remember the correction that we’ve seen over the past month or so!