What does a market top feel like?
Cathie Wood says institutional buys make bull case for bitcoin reaching $500,000 by 2026
Are we at the top? Should you sell? Does it feel like the top?
Here’s what a top feels like…
Market is going up 3-5% a day.
Then one day, it’s up a lot.
You start to count your gains and forecast your expected return for the next 7 / 30 days.
Everyone sees this stellar performance as normal behavior.
Here’s the CEO of Abra sharing a graph from the 2017 top. Bitcoin is up 50% within 30 days. Then within two weeks, bitcoin moves from $15K to $20K (which is up another 33%).
Click the FB post to read all his comments.
The thought of adding more money into the market to gain 10%-30% within a week crosses your mind.
Your friends and the media take notice.
CNBC will be a non-stop bitcoin talkshow when bitcoin crosses $100,000.
Within days, it goes to $125K. CNBC, WSJ, Barrons, Bloomberg, talking about it.
Then it keeps going up after some commentators say it will go down.
Then bitcoin hits $150K. Mainstream news fatigue and worries about it increasing too fast. People trying to get in like it’s the lottery.
Ethereum hitting new highs.
People abandoning alts as bitcoin and ethereum have a rip-your-face-off rally.
Then alts start to move as bitcoiners invest large sums of money into alts.
Bitcoin drops 10%-25% and people are frozen.
What just happened?
Bitcoin hit $150K or $175K, and now it’s $125K. (if we hit $200K this bull run, the craziness will be something that you’ll remember).
You ask yourself: I thought bitcoin is going up forever.
It just might, but not in a straight line.
See the #1 tweet on how Cathie Woods expects Bitcoin to hit $500,000 in five years.
Yes, that’s about 10X from here.
1. Don’t forget companies and countries that are now adding bitcoin too…
Cup and handle pattern for Ethereum?