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Tuesday, November 28, 2017

Bitcoin breaks the $10,000 mark! But now, should we brace for a dip?


It's an historic day as Bitcoin sets a new all time high, and adds a whole new digit to it's value!

So - now what?

Predicting what the cryptocurrency market will do is an impossible task, but let's try to make an educated guess.

First let me say, i'm a firm believer that Bitcoin hasn't reached it's peak yet, so don't take this as FUD - but a small dip may be coming.

It's important to understand the difference between a correction and a crash, what I think we will see is only a correction.

So first is just what comes with hitting a milestone like 10,000. It's a psychological reaction to a round number. It's seen in the stock market as well - people sell at 100, 1000, 10,000 marks just because it "feels like a good number" to sell at.

Secondly, it's important to understand the demographics that brought Bitcoin here - millions of small investors. Many of which have been pouring every dollar left from their paychecks into cryptocurrency.

It might sound crazy at first, but don't underestimate the power of Christmas on the market! 

It's important to understand many young, smaller investors have used cryptocurrency in place of a savings account. So with that fact in mind, it wouldn't surprise me to see lots making withdraws to fund their holiday shopping and travel. If this holds true for enough people, it could have an impact.

So here's a scenario I see possible:  slight dip, maybe to the high $8000's, followed by a strong rally of people "buying the dip" to bring it back to $10,000+.

Once again - it's impossible to predict the future, just an educated guess!  But I am saying, regardless if this dip happens or not - I don't think Bitcoin's rise is over! So you can try to time things right to sell now and buy back in at a lower price - or just play it safe and hold!

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Author: Ross Davis
San Francisco News Desk