Major Bitcoin Corrections & Milestones

[krishnapramod]

Corrections are fairly common in the Bitcoin market and it is healthy. Is Bitcoin overvalued or undervalued is what market decides and random periods of short-term corrections is a necessity for long-term stability. What we are going through now is another correction, a decline of around 25%. Historically, Bitcoin has gone through a decline of 94%, 85%, 76%, 72%, 49%, and recently 39%.

Bitcoin is a long-term investment. Short-term gains, a decline in price, getting panicky, selling, then Bitcoin really isn't for you. Corrections are a good time to buy some cheap bitcoins.

[Viscount]

untill bitcoin costs at least $1mln it's always undervalued 

[mk4]

It's funny how I see so much people panicking on cryptocurrency groups via social media sites saying like "it's the end of crypto!", "wtf why is everything crashing!?" as if they're expecting cryptocurrencies to go on a uptrend graph forever. LOL

[Dudeperfect]

Agree, we need corrections time to time in order to stabilize the price on its real level otherwise if the price is artificially pumped then it will be similar to a bubble. I have a friend who sold his holding when Bitcoin was floating around $5K and now at this level, he is buying again in smaller quantities but with more frequency during particular intervals of time. If someone is worried about his investment then we are going to touch $5K again before the new year so one should not panic sell his investment in my opinion.

[sammrheza]

and todays recover is not done yet , still didn't find floor price 

[krishnapramod]

and todays recover is not done yet , still didn't find floor price 

Exhausted selling model.

A pricing model used to estimate when the price floor of a security has been reached. The exhaustive selling model uses trendlines, volume indicators, moving averages and various chart patterns to estimate when the price of a security is going to reverse course.

A price floor is likely to be reached when a spike in selling order volume that results in a new price low slows down, and is met with increased buy order volume. The predominant downward trendline must also be broken by the price leveling out, and the 40/50 day moving average must be broken and reset.

From the bitcoin milestones chart and taking consideration into 40/50 day moving average, you can see from 08/05 to 09/05, 30 days, it was really a spike, not much of an average. The last stable price or price floor of bitcoin was around $3050.

http://www.investopedia.com/terms/e/exhausted-selling-model.asp

[InBTC4years]

Some excellent memories in those numbers. Thank you for sharing that.