Many out there are freaking out, calling for bitcoin's bull market to be over.
Before I give into the absurdities of that, these people really need to just zoom out a bit.
Bitcoin is notorious for large corrections, even in bull markets.
When we look at PlanB's stock to flow model it becomes all the more clear exactly how insignificant this drop is:
If we zoom in there we can get a glimpse of what this drop looks like. It's that tiny drop there that barely even shows up on the bigger picture.
That's how past trends of looked as well.
A few weeks from now this drop will be forgotten as bitcoin again takes out all time highs.
Looking back at a weekly chart showing dips back in 2017 and this dip will last only a 2-3 weeks max.
That means several weeks from now bitcoin will be at new highs and no one will even remember this dip.
We may have a bit lower to go still or we may not, the risk to the upside is probably greater than the risk to the downside either way though.
Dropping to $20k is about as low as we can go, so we risk $14k on the downside for $66k+ to the upside.
Sounds like a good risk/reward to me!
Posted Using LeoFinance Beta