Based in Glasgow, Scotland. Featured image from Shutterstock. Reza Jafery February The Search Volume graph seems more smooth because less data points were used to plot the graph.
Should I buy Bitcoin?
What a fuss Bitcoin is making in recent days! There is barely one cryptocurrency expert who has not been engaged in this discussion. This year, when Bitcoin together with all its worshippers celebrates its 10th birthday, is the best time to get all your ducks in a row. I want to tell you what I think about the latest trends and near future of the first crypto. Hopefully, it will help you to answer the main question — to buy or not to buy.
Don’t try to catch the exact bottom.
Last Updated on September 10, This is the question that many people ask themselves when they hear about the outlandish returns that this cryptocurrency has had over the past 10 years. In this short guide, we will be covering the massive potential but also the considerable risks of investing Bitcoin, and we will hopefully help you to answer the question of whether you should buy Bitcoin, or not. Bitcoin was created back in by its pseudonymous founder Satoshi Nakamoto. It was the first cryptocurrency to be ever created, and it has spawned an entire industry around it hundreds of businesses and thousands of new crypto assets.
1. The Bitcoin Price’s Failure to Break Double-Top
What a fuss Bitcoin is making in recent days! There is barely one cryptocurrency expert who has not been engaged in this discussion. This year, when Bitcoin together with all its worshippers celebrates its 10th birthday, is the best time to get all your ducks in a row.
I want to tell you what I think about the latest sgould and near future of the first crypto. Hopefully, it will help you to answer the main question — to buy or not to buy. It is still completely independent, decentralized, and digital. Which means that it is not backed by banks, or national economics. It is anonymous, secure, global, and the total supply is still should i buy the bitcoin dip to 21 million. What does this say to average users? The crypto remains scarce, useful, and different from fiat money.
You may say — things that are in demand, and can do what others cannot, will never lose their value. Why then can Bitcoin not find thhe bottom and is still drowning? Well, if you remember the situation with the tech market at tthe turn of the century, you can see similarities between BTC and high technology.
Internet bubbles, crashes, and dizzy climbs: we have seen this recently, and now the situation seems to be more stable. Just the same with major cryptocurrencies suould they are very young, and they are in fashion. It results in quick soars and dips, because when too much attention is focused on the asset, a tiny price movement causes great hopes bjtcoin avalanche-like panic.
It was the all-time ceiling of the main crypto, but it did not hold this record even for a day. On the eve shpuld the new year, bitcoin cost almost seven thousand dollars. Then, in a week, it rose by three thousand, then lost even more, and these roller-coasters dragged BTC up and down for several months, until in June-July it found the floor and stood comparatively still at approximately six to seven thousand dollars per bitcoin. This peace and stability were short-lived.
ADX is the special index that is high when the trends are bad. Another reason for this drop bigcoin be the recent Bitcoin Cash shoulf, which happened in November. It was not the first split in the BTC offspring, however, this time two groups of programmers did not manage to reach a consensus about how to develop their project. This disagreement did not affect classic Shokld directly, but still the shou,d investors felt themselves insecure, because this case clearly shows how nascent the digital asset is.
Moreover, many crypto users sell out their holdings at the end of the year to pay taxes, buy gifts. Fear of malicious manipulations, bad news from TV, and slight changes in the supply and demand may cause significant fluctuations in the market sentiment. Bitcoin investors begin to dispose of their tokens, which leads to further panic, and the situation becomes a vicious circle.
But the price never drops endlessly, right? There are many reasons to buy in a bear uby. Think about one thing — if so many bitcoins are being sold lately, there should be a buyer, right?
What makes them invest in something that falls and seems too risky? Simply the awareness of something you did not pay attention to:. All this says that even in the short run Bitcoin is a good buy now, when it is cheaper. Remember the basic rule of playing the market — buy when everyone is selling, and sell when everybody is buying. At the time of writing this article, Bitcoin was still in a bear market and things were not so clear about what could happen with the most popular digital asset.
Now that we are closer to than towe can understand a little bit more about what happened with the digital asset and what can happen in the future. This huy that there is a real interest bicoin the most popular digital asset and that many buyers and enthusiasts are entering the market once. Things are getting prepared for the digital currency to surge again and continue its bull trend.
Although just a few analysts are giving a specific price target, they all consider that the virtual currency is entering a new growth cycle.
One of the reasons bitfoin make users, investors and experts bullish about this virtual currency is the fact that it will be halving in May next year.
Miners will be receiving half of the rewards they are currently receiving. That means that they are going to be earning 6. This is bullish for Bitcoin because the new issuance of Bitcoin is being reduced every four years.
John McAfee and many other experts have given their predictions for the future price of the virtual currency. All of them consider that Bitcoin will surpass its all-time high and reach larger values. Dop United States and the Eurozone are also experiencing monetary bky to improve their respective economies.
The central bank of each of these jurisdictions took measures that would inject U. The chairman of the FED, Jerome Powell informed that they reduced a shoulc point their benchmark rate on Wednesday in order to avoid future problems in the economy. At the same time, the European Central Bank ECB decided to keep with the stimulus to bittcoin economy due to the very bad results shown by the PMI in the manufacturing sector.
Inflation rates are also falling, which pushed authorities to keep expanding the economy. With the digital currency experiencing a halving in less than a year and with flexible monetary policies, Bitcoin could become a very good investment for the future. Indeed, Bitcoin is becoming a much more valuable asset compared to other digital currencies in the market. As reported by CoinMarketCap, Bitcoin has the same dominance it had back in As the market sshould expanding, the most popular cryptocurrency shows ths resilient it is to fluctuations in the space and how it outperforms altcoins.
If you want thhe know more about Bitcoin predictions, you can check this out. In conclusion, I would like to say that Bitcoin is more of a long-term investment tool. When you buy cryptos, you should keep in mind that you take part in something novel, still unknown, with huge potential. This technology is about advancing the entire world of e-commerce, statistics, finance.
This is why bitcoins are shohld for patient players. Well, dealing with cryptos is shoulc gambling: you should be wise and very careful, because you can lose all. However, there are BTC holders who have bought them several years ago. Despite shoudl the crashes since those days, byu they own assets at the cost of approximately 19, You may say, it would be wiser to sell them off when each token was worth this money, but who knows where the next huge bull run will bring the BTC price up?
And as history shows, there will be the one, and very soon. Why am I so sure? First — bitcoins will stay in demand, as they are necessary for lots of people. Second — their number is limited, and the supply will only decrease with years, because mining will bring less bitcoins, as this is how the system works.
This is why I tell you — do not wait until BTC shoots up, and the charts become should i buy the bitcoin dip.
McGlone may never come true. They all say that cryptos are far from dead, and this is a good time for investing. The Bear Market Report Our Bear Market guide not only helps you survive this crypto winter, but also guides you through the foundation you’ll need to thrive in the next bull run. The Bear Market Report. Our Bear Market guide not only helps you survive this crypto winter, but also guides sbould through the foundation you’ll need to thrive in the next bull run.
Situation with Main Cryptocurrency
Sometimes the best thing you can do, is set a limit-order, and walk away. Hackernoon Newsletter curates great stories by real tech professionals Get solid gold sent to your inbox. Disclaimer: The views expressed in the article are solely those of the author and do not represent those of, nor should they be attributed to, CCN. Reza Jafery June 2. The crypto market is more volatile than any market the world has ever seen. Reza Jafery October The tapering off of both momentum and buying pressure prior to this leaves me to believe that probability is in favor of further downside. The squiggly lines of technical analysis can be used to back up either assertion. Due tge the amount of volume, it’s more likely price has short term relief that can last hours or days before another push down to retest support.
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