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There is a potential lopsided risk vs reward situation in the market right now, with a potential high reward (500%+) for a mid level risk (up to -35%)

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by COINS NEWS 189 Views

This is why bear markets and crashes offer some of the best opportunities.

This is not financial advice, just something to think about, and do your own due diligence.

Nobody knows what will happen. But if historical data is any guide, we can see two more probable scenarios:

-This could be a premature crash into a bear winter. So we went from summer 2017 and fast-forwarded straight to 2018. It's a deviation, but deviations are always possible.

-Or this could be something similar to 2013. When the market crashed by around 50% in the middle of a bull run. Had a mini bear market, then bounced back and continued its bull run.

Given the history of Bitcoin, which I know might be too brief, we still know that a crash into a bear winter can often take the price all the way down to over 70%. At least for a brief moment when it hits its lowest price.

But it also never goes back to the previous bull market's ATH when it hits the bottom. So it would be very unusual to go back to $19K.

Since the bull run ended prematurely and at a much lower rate than the usual bull run, then it's probably less likely to go all the way into the -70%. That's two historic reasons why I believe it's very unlikely that the bottom will drop below $20K. Especially when news and fundamentals are more solid than ever.

If this is a crash into a bear winter, we've already gone most of the way down already, so there's not a whole lot of down left. Which is why I don't think there is a lot of risk left anymore.

If history is any guide, we'll have somewhere around 30% to go down from here at worst.

But if it turns out to be scenario 2, where it's 2013 all over again, then you're probably looking at a bull run resuming to a higher ATH past 60K. That may only go as high as around 90K, which is still a 200% return. But taking into account how the market usually behaves during bull runs, even with a conservative ATH estimate, you'll be looking at over 500% gains from here. That's with a more conservative 8x cycle in mind (2017 was a 15x cycle).

submitted by /u/fan_of_hakiksexydays
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