Analysts believe the Bitcoin price may have found a floor just beneath $8,000, and that it won’t go any lower from here, with some even predicting a jump to $50,000.
Ignore this drop in Bitcoin's price. I am firmly with Peter Brandt in his medium term $50k price prediction. I am also firm on my $1 mil price by the end of 2020. Stop wringing your hands! Watch GOT reruns, or woo your spouse or finish off your drug stash. All is well. pic.twitter.com/gMFdLaVkQc
— John McAfee (@officialmcafee) September 30, 2019
After a nearly 5% recover over the 24 hour period, it’s possible these bulls are once again correct.
The truth is, being a Bitcoin bull is the easiest strategy. Nowadays, the asset sells itself, and the market rewards even minimal patience. As such, what’s harder in Bitcoin markets in 2019 and beyond is being a bear, and understanding when the opportunities to short will actually arise.
If You Build It, We Will Short It
Not every growth movement is a bubble. Not every dip is a crash. Not every dollar is the moon.
In investing, it’s good to avoid emotional investment.
Why invest your emotions along with your dollars? You’re going to “lose” money on cryptocurrency from time to time. That’s just the name of the game.
You see people go deep in crypto. People carry heavy bags of coins all the way to the bottom of the market, and often they never recover.
For many, emotional attachment is the problem. In the end, selling a cryptocurrency when it’s risen to a height you think it will fall from is a good strategy to acquire more of it .
When the price drops, you just buy more, and consolidate your holdings into crypto even more. You can rinse and repeat this strategy, and if you do it with big enough moves, it can certainly make you rich.
The Ghost of 2017?
As you can see in the chart below, Bitcoin had a decent run today.
Is Bitcoin preparing for another run like the on we saw this time two year ago? Chart from TradingView.com
This run isn’t unlike what we saw two years ago. People were still stunned by the run from $1,000 this very time two years ago, but things were soon to get crazier.
Bitcoin price in 2017. As you can see, on this day two years ago, a similar climb took place, before later days saw a massive, deafening bull run. Chart from TradingView.
Will it extend into the breakneck bull run we saw back then?
One thing we can be sure of: if recent history is any lesson, nobody’s trading the news. The Bakkt futures exchange launching hasn’t done much for the markets.
There are two major events where Bitcoin is concerned: the upcoming halvening and the eventual, widespread launch of the Lightning Network.
The former is an event in which miners will suddenly receive half the amount of coins for each new Bitcoin block, which means the amount of new coins entering the Bitcoin ecosystem will cut in half. That is scheduled to take place in just over 6 months.
The Lightning Network is currently operational, but not currently in widespread use. As more and more apps are built on it, consumer demand for Bitcoin is likely to grow, as companies build more interesting use cases with the faster tech stack.
Combined with the stirring Initial Exchange Offering boom, we can expect investor interest to return to crypto markets in the near to mid-term future.
Will it be with the same intensity that previously drove Bitcoin over $20,000?
Time will tell.
Bitcoin traded over $8,300, and on its way up, at press time.
