This has been a very rocky time to be a bitcoin and crpyto investor.
Undoubtedly many have questioned whether they really are investing in the next great technology or just have been taken for a ride by greedy crypto whales.
While it still can't be known for certain which one it is just yet, there is something that every bitcoin investor should be aware of...
And that is this:
Did you know that since bitcoin first began, it has had 5 different 10X rallies and subsequent pullbacks?
Going a bit further...
Did you know that every time bitcoin has gone up by roughly 10X, it has had a pullback, only to go on to make another 10X move and see new all time highs?
And it has happened 5 different times in the last 9 years!
Don't believe me?
Check this chart out:
(Source: https://seekingalpha.com/article/4225938-time-wake-smell-bitcoin?page=5)
Looking at this chart we can see a pattern start to emerge.
Basically, every 2 years bitcoin goes on a 10X rally and then pulls back significantly. Once the pullback is complete it goes on to rally 10X again.
And in most cases the next 10X rally starts from the previous highs!
That means that even if you bought the highs you still made 10X on your investment over the following 2 years.
Not sure about you, but that is a pretty significant piece of information!
Remember, past results doesn't necessarily predict future results...
The catch to all of this is that of course there is no guarantee that history will repeat itself, in fact history rarely if ever repeats itself exactly anyways.
However, we have seen this happen 5 other times in the past already and for it to not happen this time would mean this would represent the "but this time it's different" line of reasoning.
For those familiar with investing, those are very dangerous words to base investments on.
Again, doesn't mean we will see a 10X return from the previous all time highs, but if bitcoin were to follow its historical patterns, we sure could!
Stay informed my friends.
Follow me: @jrcornel