When will Bitcoin
bump into bottom again?
(Spoiler: till the end of 2019)
Disclaimer: This article is not intended to be a source of advice or credit analysis with respect to the material presented, and the information does not constitute investment advice.
Bitcoin is $10 000 again. When will crypto-investors loose their money?

Last week bitcoin has reached the price of $10 000 for the first time in half a year and some inspired enthusiasts started buying it out. The story repeats, the last time Bitcoin reached $10 000 was in November 2017. In only 18 days it doubled in price, but then there was a sudden slump and it lost more than 80% of its price.

However, nowadays the crypto industry is in a more rapid development than it was in 2017, growth drivers are stronger thanks to support of institutional investors (MUFG block chain projects). Various companies launch their own cryptocurrencies which is, by the way, well-received by the society. Judging by the data from public sources, many crypto investors inspired by the positive tendency are buying bitcoin again and believe that Facebook's cryptocurrency (Libra) finally popularizes other cryptos especially the oldest one (BTC).

There are certain suppositions bitcoin would exceed its psychological price of $20 000 and it would lead to a round of price increases (up to $45 000-50 000) this fall. Such a price would have no fundamental grounds, so another slump is to be expected (down to the current rates).

So now, those who jumped at the opportunity and bought bitcoin at $3500 are facing a serious doubt, "Isn't it too late to buy bitcoin right now expecting the price to skyrocket by the end of the year? How probable is the 2017 scenario?"

Let's try answering the two questions:

The reason for the price to grow is mostly human factor, — people noticed a steady growth tendency in the beginning of the year and finding grounds in their own emotions, started to buy bitcoin out. An elevated interest in "digital gold" is proved by the following facts:

According to Google Trends, the "bitcoin" keyword was googled much more often (an increase of 250% in June);

The hash rate achieved 66 tera hashes per second (June 24, 2019);

Bitcoin charts resemble a moon-bound rocket.

The above facts illustrate the "implementation" phase, big investors who bought BTC in the beginning of the year start to implement part of their crypto-assets.
To clearly understand these processes, let's have a look at the 3 phases of bitcoin price-formation:

1. Accumulatory phase

Obviously, at this phase the assets (bitcoin in our case) are accumulated. Throughout a long-term period (3 months or more) investors obtain currency at a lowered price. Sharks of the crypto industry know perfectly well that the less it is spoken about the better, thus there is not even a trace of growth visible. So the history of this long cycle goes back in the beginning of the year, when the price was $3300.
The whole first quarter was characterized by mixed dynamics, both positive and negative news were published which then leveled positive news background.
The end of this phase was when the price exceeded $5000, accurately at the end of the first financial quarter. As a result, a big deal priced around $100 million was carried out on the major markets — Coinbase and Kraken in the USA, and Bitsmap in Luxembourg. There was a unified algorithmic order which was simultaneously executed on the three platforms — around 7 000 BTC were obtained each hour. It was the last trace of the sharks before they sank deeply in the digital space waiting for the implementation phase to start.

2. Phase of participation

Too many things would happen during this phase, professional traders would notice the currency's significant growth. Basically, everyone who's into cryptocurrency would notice, —from crypto-bloggers on YouTube and analysists to individual traders.

During this phase, professionals start to actively take part in price formation, creating the trend and the tendency. They analyze, define the best price and buy BTC and some other altcoins. And this is a global event — thousands of transactions during a long-term period gradually elevate the price. Exactly during this phase you read «up trend» in head-lines and see it on charts.
Professionals are well informed about the sharks and their tactics which is strictly logically grounded and realized in accordance with strict risk management limitations. Once the info about the bitcoin's growth is public, a professional would know, it is high time they stopped investing into it. Now it is impossible to analyze it, so pro's are preparing for the last phase.

3. Phase of implementation

This phase is partially described in the beginning of this article. It is also worth adding to the mentioned above, that the mainstream audience is more and more interested in the topic. Each day the news are published and spoken of, so emotional enthusiasts would buy bitcoin without even analyzing the situation and growth potential. Emotional component is an only thing important for them and at this phase it is as strong as ever.

Taking into account all the above factors, an avalanche increase in demand occurs and as we all well know, demand begets supply.
And this is where the sharks return and sell their $3 300 BTC for $12 500, having 500% of profit.

The last phase normally takes no longer than two weeks and then all of the phases are repeated. Once again bitcoin's price stabilizes and once again it is hard to predict the direction it'd follow this fall…
But there are some little factors that serve as guidelines for professionals and those who start thinking and abstain from emotions:

A six month cycle is too short for the sharks, their assets can't be converted at once, so it is divided into two shorter cycles. In other words, we should not expect the prices to drop this summer. Following the present idea, it will happen in the end of 2019.

The second factor helps to understand the bitcoin's target for this year. Mainstream audience definitely waits for it to cost $20 000 and if it does hit the price, emotional enthusiasts will buy and buy — no questions asked. So, it may hit the $40 000 — $50 000 I've mentioned before.

So, you do really have a chance to earn on BTC this year, but don't forget to take the matter seriously, count your own money and the commissions you'll pay.

All of this grants an opportunity to earn on crypto currency even more than 300%, just remember to always be in time.

So, are we buying BTC or not? Sure thing we are, but with reliable mediators, since the question of crypto-investment legality is as critical as ever.

Stay tuned for more if you're interested in bitcoin's future or if you'd like to work with a European Broker, Raido Finance.
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