Bitcoin Continues to Fluctuate but It Seems There Is a Stablization
Today, Bitcoin is in the fifteen to sixteen thousand range, off of the lows from the prior week. Bitcoin is just the face of this revolutionary currency movement, while there are many different cryptocurrencies to be traded.
The argument that a bubble could rapidly be growing is valid and needs to be addressed. I highly recommend looking into Bitfinex and Tether, understanding what could be happening. Trying to explain it in a summary version is nearly impossible, but it could be leading to something that many are ignoring. Similar to the dot com bubble, cryptocurrencies are doing the same thing right now.
If you are attempting to make a quick buck then now may not be the best time to enter the market. A popular phrase with the current market reactions are fear and greed. Fear and greed have certainly taken over, but what that means to the experienced trader is you can play on the markets emotion, thanks to their not being algorithms trading this market. However, with the introduction of futures and ETF’s coming soon, it may only be a matter of time.
Going forward, taking a very precautionary approach is a must. The market is still there and the technology is valid, but the adoption is going very slowly. Goldman Sachs has tested the blockchain technology and returned solid results. Ideally, you would like to see this adopted by Visa and other payment processing companies, but that would mean incorporating a new technology and possibly accepting Bitcoin along side the US Dollar.
Be very wary of the markets ahead as there could be a bubble forming that will eliminate wealth. Realizing some of the profits may not be a bad idea at this point, but whatever your position is, use caution and better judgment with your next move.