Best of the Week
Most Popular
1. Ray Dalio: This Debt Cycle Will End Soon - John_Mauldin
2.Stock Market Dow Plunge Following Fake US - China Trade War Truce - Nadeem_Walayat
3.UK House Prices 2019 No Deal BrExit 30% Crash Warning! - Nadeem_Walayat
4.What the Oil Short-sellers and OPEC Don’t Know about Peak Shale - Andrew_Butter
5.Stock Market Crashed While the Yield Curve Inverted - Troy_Bombardia
6.More Late-cycle Signs for the Stock Market and What’s Next - Troy_Bombardia
7.US Economy Will Deteriorate Over Next Half Year. What this Means for Stocks - Troy_Bombardia
8.TICK TOCK, Counting Down to the Next Recession - James_Quinn
9.How Theresa May Put Britain on the Path Towards BrExit Civil War - Nadeem_Walayat
10.This Is the End of Trump’s Economic Sugar High - Patrick_Watson
Last 7 days
Gold Stocks Triple Breakout - 15th Dec 18
The stock market fails to rally each day. What’s next for stocks - 14th Dec 18
How Low Could the S&P 500 Go? - 14th Dec 18
An Industrial to Stock Trade: Is Boeing a BUY Here? - 14th Dec 18
Will the Arrest of Huawei Executive Derail Trade War Truce? - 14th Dec 18
Trump vs the Fed: Who Wins? - 13th Dec 18
Expect Gold & Silver to Pullback Before the Next Move Higher - 13th Dec 18
Dollar Index Trends, USDJPY Setting Up - 13th Dec 18
While The Stocks Bulls Fiddle With The 'Fundamentals,' Rome Burns - 13th Dec 18
The Historic Role of Silver - 13th Dec 18
Natural Gas Price Setup for a Big Move Lower - 13th Dec 18
How to Get 20% Off Morrisons Weekly Supermarket Shopping - 13th Dec 18
Gold Price Analysis: Closer To A Significant Monetary Event - 13th Dec 18
Where is the Stock Market Santa Claus Rally? - 12th Dec 18
Politics and Economics in Times of Crisis - 12th Dec 18
Owning Precious Metals in an IRA - 12th Dec 18
Ways to Improve the Value of Your Home - 12th Dec 18
Theresa May No Confidence Vote, Next Tory Leader Betting Market Analysis and Forecasts - 12th Dec 18
Gold & Global Financial Crisis Redux - 12th Dec 18
Wow Your Neighbours With the Best Christmas Projector Lights for Holidays 2018! - 12th Dec 18
Stock Market Topping Formation as Risks Rise Around the World - 11th Dec 18
The Amazing Story of Gold to Gold Stocks Ratios - 11th Dec 18
Stock Market Medium term Bullish, But Long Term Risk:Reward is Bearish - 11th Dec 18
Is a Deleveraging Event about to Unfold in the Stock Market? - 11th Dec 18
Making Money through Property Investment - 11th Dec 18
Brexit: What Will it Mean for Exchange Rates? - 11th Dec 18
United States Facing Climate Change Severe Water Stress - 10th Dec 18
Waiting for Gold Price to Erupt - 10th Dec 18
Stock Market Key Support Being Re-Tested - 10th Dec 18
May BrExit Deal Tory MP Votes Forecast, Betting Market Analysis - 10th Dec 18
Listen to What Gold is Telling You - 10th Dec 18
The Stock Market’s Long Term Outlook is Changing - 10th Dec 18
Palladium Shortages Expose Broken Futures Markets for Precious Metals - 9th Dec 18
Is an Inverted Yield Curve Bullish for Gold? - 9th Dec 18
Rising US Home Prices and Falling Sales - 8th Dec 18
Choosing Who the Autonomous Car Should Kill - 8th Dec 18
Stocks Selloff Boosting Gold - 8th Dec 18

Market Oracle FREE Newsletter

How You Could Make £2,850 Per Month

Black Friday Bitcoin Crypto Crash! Are All Cryptocurrencies Going To Zero?

Currencies / BlockChain Dec 23, 2017 - 03:42 PM GMT

By: Jeff_Berwick

Currencies

Peter Schill and the Health Ranger are finally right. They were right all along.

The cryptocurrencies have all crashed and are headed towards zero.

It was only a few days ago I commented that almost every cryptocurrency was in the green. Today was the exact opposite.


Cryptocurrencies hit an all-time high of $652 billion just a day ago and on Friday they hit a low of $423 billion for a one day loss of 35%.

They have since recovered to $540 million.

Bitcoin hit an all-time high just above $20,000 on December 17th and recorded a low at Coinmarketcap.com on Friday of $11,833 and is currently just above $14,000.

That means bitcoin has slumped 40% since its high to the low and is currently 30% off its all-time high. Overall, bitcoin has fallen further than the rest of the sector quite dramatically in the last few days.

But, wait, are Peter Schill and the Vitamin guy right? We are only down in the neighborhood of 30-40%.

Bitcoin has actually fallen 30% five times this year already. So, on average, this happens every two months. And, during previous drops it was followed by an increase of 76%, 237%, 183%, 165% and 152% before it dropped again.

And here are past major drops going all the way back to 2010:

So, is this latest drop all that extreme? Or unexpected?

In fact, it wasn’t unexpected at all, by us here at TDV.

TDV’s Senior Analyst, Ed Bugos, put out an alert to subscribers (subscribe HERE) on Thursday warning of a pullback being imminent, saying, “We could easily see prices fall back to $13,500. The primary bull market trend is intact above $12,700, which is the last highest low.”

Less than 24 hours later and bitcoin hit Ed’s target low almost exactly. And, as you know, I have been suggesting taking profits on bitcoin and the cryptos since bitcoin soared over $15,000. And Ed reiterated that in his alert yesterday, saying, “we still highly recommend rebalancing your portfolio and reducing your crypto exposure a little."

So, we will see how this most recent pullback plays out. In this interview I did today with Rogue Money I discuss where things could be headed.

For now, this looks like a completely ordinary pullback after a massive run higher. And, a healthy and needed pullback at that.

Perhaps bitcoin and the cryptos are giving everyone an early 30% off Christmas present. If this was Black Friday and it was 30% off DVD players at Walmart, millions of American sheeple would climb over each other to get it. But, when cryptos are 30% off? For some reason, people have the opposite reaction to retail goods and they are too scared to buy.

For all those who had been waiting for the dip to buy... this is the dip.

And, on December 24th at 12pm Eastern time I’ll be revealing my next cryptocurrency pick to TDV Premium subscribers (you can subscribe or upgrade from Basic HERE).

It has fallen about 30% along with all the other cryptos in the last few days… so, if that doesn’t change by Sunday you may get it at a bargain.

For now, HODL on, everyone.

Anarcho-Capitalist.  Libertarian.  Freedom fighter against mankind’s two biggest enemies, the State and the Central Banks.  Jeff Berwick is the founder of The Dollar Vigilante, CEO of TDV Media & Services and host of the popular video podcast, Anarchast.  Jeff is a prominent speaker at many of the world’s freedom, investment and gold conferences as well as regularly in the media.

© 2017 Copyright Jeff Berwick - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Jeff Berwick Archive

© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

HarrisD
25 Dec 17, 17:49
Minor Bitcoin Pull-Back On Way To The TOP

Dear Jeff,

Excellent article, you have really captured the seductive nature of exponential bubbles. What would be a catastrophic drop for any other asset is just a regular pull-back for a technical bubble, as the price drives its way to the top. Despite the pull-back last week I expect the price to continue on higher to even more insane levels before the bubble top is recorded and the bubble really does burst.

I'm looking at a Bitcoin top price of between 21,500 and 22,650 in coming weeks. There is a top signal forming around the end of January (not yet fully formed, but its close) and that suggests a top in Bitcoin forming sometime between the end of January and the end of April.

I'm looking at a particular pattern that is predictive, that is to say it's different from other technical analysis that tells you what has happened in the past, instead my approach predicts what is going to happen over coming weeks and months. It's a combination of quantitative analysis and predictive analytics with some pattern recognition thrown in for good measure.

Once the bubble bursts we are looking at a huge drop in price that will burn most investors. Previously my model was predicting a drop of 70% to 80%, but I'm revising that a little more today to be a 75% to 90% drop from top to bottom. The lucky ones who get out at the top will walk away with a fortune, however, the rest will walk away nursing their wounds (and counting their huge losses) and thinking to themselves how could they have been seduced so easily to throw so much cash away. Think Tulips! Think dot com bubble! Old or new there are countless examples in history where the same manic investing happens. Those who don't study history are doomed to repeat it.

Cheers,

David


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules