THE RECENT DOWNTURN IS NOTHING NEW

The recent downturn in Bitcoin is nothing new in 2018.  As of 10:30 AM on 8/8, is -25% from the July high.  That’s a lot but not compared to the prior drawdowns.

Let’s put this into context.

Starting with the February 2018 low point, Bitcoin has witnessed six distinct moves:

2/6 – 2/21: +98%

2/21 – 4/6: -45%

4/6 – 5/4: +50%

5/4 – 6/29: -41%

6/29 – 7/25: +46%

7/25 – 8/8: -25% (so far)

If this decline gets to the -40% threshold, Bitcoin could be near 5,000, which clearly would be below the 2018 low…  And that makes this trading zone pretty important to hold. The best rallies in 2018 all have begun between 5,800 and 6,500.