Have you notice Bitcoin is doing Cycles?

Yes, I did not think about it until someone pointed it out to me in a mayor spike in price, right after a comment on tweeter from Elon Musk that said he was putting some money into the cryptocurrency. Let me try to explain; cryptocurrencies are new, we are still trying to get a grasp on how they behave. It´s all new. People are starving for information that can lead them to understand the trading dynamics of this new instrument or currency. Any piece of information will contribute to feed speculation and this will feed the market activity. If tomorrow you hear that a known investment superstar or fund manager puts money into bitcoins, you will feel compelled to invest. Prices go up. Then let´s say a federal government treasury official starts commenting on cryptocurrency being regulated and investor pull out, creating a price drop. This happens very often, and the currency starts to spin in price cycles, up and down, up, and down. This is good for trading. Anything that moves in the market is good for trading. If you add that the bitcoin has a limited amount in its definition of existence and that it is becoming popular, the effect is a up and down spiral upwards, where each cycle ends at a higher price that the last. A very cool effect and good for long term holding for the patient trader. We will see how it continues to behave as a tradeable cryptocurrency and the future. The next for this kind of instruments, is what the governments and banks will, or not do, in terms of regulations. We´ll see.

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