Why Bitcoin is Expected To Hit Another High In 2018
Judging from history, experts believe that bitcoin might hit the six-figure value.
Where is Bitcoin Heading?
The continued unexplained gains by bitcoin might be an indication that the crypto is set to hit an all-time high in 2018 or early next year. At the moment, bitcoin is trading in the range of $6000 and $7000. This year, Bitcoin hit a high of $8400 back in July.
Amid this fluctuations, bitcoin biggest critics have been questioning the cryptos volatility in the market. Many point out that the crypto prices sometimes decline without any explanation. However, on the other hand, they lack knowledge on how the currency fares in the market over time.
Since its inception, Bitcoin has suffered a number of huge price drops. From history, Bitcoin has managed to cap every drop at a level significantly over its value. Bitcoin has been consistent with the abrupt gains an indication that it is a logarithmic asset. The chart explains more about this trend.
A look at the next chart shows that bitcoin’s values have been rising yearly on a consistent trend. Bitcoin has maintained an attractive variance regardless of any price crash.
What History Says About Bitcoin’s Price Fluctuations
At the beginning of 2018, Clem Chambers from ADVFN compared bitcoin’s growth to the investment portfolio fronted by businessman Warren Buffett. Chambers noted that bitcoin prices grow by 26% at every juncture. Based on this analysis, Chambers predicted that bitcoin will surpass its all-time high to hit the over $250, 000 mark.
Another look at history, during bitcoin’s initial bubble, it grew from $0.95 to $32. The largest crypto was then hit by a 90% drop to trade at $2. This behaviour was also witnessed about five years ago. In 2013, bitcoin hit the $1200 mark from $100. Later, it significantly declined to trade at around $200.
In 2017, bitcoin came into the new year valued below $1000 before rising to almost hit $20,000. Bitcoin later declined by 60% to trade at around $6000.
At the beginning of 2018, Prateek Goorha scientists, compared bitcoin value fluctuations to the bacteria growth. He opines that each price rally from the past has been characterized by three stages.
The initial stage was stasis. Here the industry comes to terms to with status quos set up during the last recorded decline. We then have exponential growth. Here, the bitcoin value rises to hit a new all-time high. The last phase is the decline. Under this stage, bitcoin experiences a massive decline in value but it manages to rise again.
In case this pattern stands, bitcoin is expected to hit an exciting all-time high. The next run might hit six figures.