The recent yearlong correction has convinced most investors and analysts that Bitcoin (BTC) is repeating the exact same cycle as before. It is true that Bitcoin (BTC) did decline in the same manner that it did in 2014-15 for the most part, but that does not mean that whatever followed afterwards is also going to repeat this time. Whenever Bitcoin (BTC) is due for a correction to the downside, it corrects regardless of the movement of bigger related markets. For instance, Bitcoin (BTC) started to fall in January, 2018 whereas EUR/USD kept on rising till March, 2018 when it finally topped out and started to decline. However, the converse is not true. If Bitcoin (BTC) is due for a correction to the upside, it waits for bigger markets to support its move.
As Bitcoin (BTC) is traded predominantly in US Dollar (USD), its movements depend largely on the movement of EUR/USD during a bull market or at critical turning points. After the bear trend of 2014-15, Bitcoin (BTC) took almost two years to reach its previous all-time high. There are certain reasons why it took that long. First of all, the market cap of Bitcoin (BTC) was just $4 billion! After the Mt. Gox hack, there was a good chance that all of this could have been a failed experiment and Bitcoin (BTC) would have been dead. It was a new technology and even the early developers did not know if Bitcoin (BTC) would be able to reach the level of adoption it has today. The media was very hard on Bitcoin (BTC) and the sort of flash crashes we had back then would surprise most traders today.
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