#Bitcoin has started the trading year with a slide for the first time since 2015 by losing almost 5% of its value since Friday. On the first trading day of 2017, Bitcoin gained 3.6% to $998, according to coinmarketcap.com.While another slide is definitely not what investors are hoping for on the first day of a new year, does the recent Bitcoin crash mean the end of an era? Or is it just part of the normal market waves coming and going?

Bitcoin and Wallstreet

Since Bitcoin futures was introduced early in December, we've seen Bitcoin hitting an all-time record high at $19,511 on December 18. Since reaching nearly $20 000, Bitcoin started declining considerably, leaving investors rather uncomfortable.

The world's favourite cryptocurrency is currently trading at levels around $13 500.

Bitcoin futures are down about 7% on Tuesday morning, pricing Bitcoin on the 18th of January at $13,355. This illustrates clearly that investors expect the Bitcoin slide to extend well into January, even though they assume that the price won't drop past $13 000.

Really stupid speculators will get burned

David Stockman, President Ronald Reagan's former director of the Office of Management and a Wall Street bear, took full advantage of the recent Bitcoin slide, by warning investors that a 40% to 70% correction should be expected in both stock and #Cryptocurrency #markets. He added that 'really stupid speculators' will get burned in a 'gigantic, horrendous storm'.

Stockman said that related futures do not add to the validation of an asset and that markets are trading at hyper-inflated prices, which cannot be expected to last.

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He does not know when a correction can be expected but he is adamant that is will happen soon.

Is that a Doji on the weekly chart?

Making speculations on the future of Bitcoin speculators is all fine and well, but when it comes to price prediction, good old technical analysis surely still have its say.

When studying the weekly chart on Coindesk, it's easy to spot the 12-week-long rally that caught the imagination of investors globally. The rally is followed by a Hanging Man candlestick formation that tested the $10 000 support for a third week in a row. Last week closed in a long-shadow Doji that still could not break through the $10 000 support line. At the beginning of a new week, the latest candle has already tested and rejected $10 000 support while it's currently playing around last week's opening and closing prices.

Doji's, as candlestick formations, indicate a tug-of-war between buyers and sellers, often preceding a change of market direction. Because the price of Bitcoin failed to break through significant support at $10 000 for five weeks in a row, we can safely say that one of two things will happen this week: Bitcoin can either fall through the roof, which will be confirmed by a close below $10 000.

The other, more likely possibility is that Bitcoin pessimists have had their chance, and lost, meaning that we should see the buyers taking back control this week. If this is the case, everyone looking the buy Bitcoin at a bargain should have taken the chance when they got it, because Bitcoin should reach $20 000, and overtake it, at lightning speed.

Predicting the future of Bitcoin

Making market predictions is always a bit of a gamble and Bitcoins extreme volatility just adds to its forecast difficulty. Maybe the cryptocurrency slide will continue, maybe the crypto and stock markets will both fall between 40 and 70%. But, knowing Bitcoin, the chances of another spectacular rally is equally viable. The world's favourite crypto has been known to favour deep pullbacks and, before getting anxious, investors should keep Bitcoin's personality in mind. Either way, Bitcoin investors are in for a wild ride in 2018.