Investing in Bitcoin or other cryptocurrencies at this time almost feels like trying to catch a falling knife. Since no one knows if the bottom is in, there is a real chance the price will continue to drop even lower. At the same time, some speculators and analysts are confident things will start to look better from here on out. All of this advice needs to be taken with a few grains of salt
To Buy the Dip or Not?
When there is proverbial blood in the cryptocurrency streets, it is only normal people grow wary of what is happening in front of their eyes. In the case of Bitcoin, its price has reached a low value not seen throughout 2018. In fact, it has been over 15 months since the current price range was last seen, which further confirms things are not looking all that great. This recent price drop raises a lot of questions as to whether or not now would be a good time to purchase BTC.
Based on the current market circumstances, buying Bitcoin would almost equal to financial suicide. It is only normal to think along those lines first and foremost, primarily because there is no bottom in sight. Many people had expected the $6,000 and $5,000 levels would be quite sufficient to keep the momentum going, but that is not the case whatsoever. In fact, the BTC support at $4,750 was broken relatively easily, and it seems $4,500 is in sight as well.
Despite the current market onslaught, one has to keep in mind every Bitcoin being sold is also bought by someone else. Although that fact is often overlooked when looking at the current price drop first and foremost, one has to keep in mind no BTC can be sold without someone else buying it. Moreover, there are hundreds of people buying Bitcoin through non-centralized exchanges, which can have a positive impact on the price in the long run as well.
All of this raises the question as to when the Bitcoin price will rebound. If Willy Woo is to be believed, there will be a healthy level of support at $4,400. Although that may be what the charts indicate, one should never take such information at face value either. It is evident the US traders will either have a positive impact on the price moving forward, or drive the Bitcoin price down even further.
Wow that was nutty! RSI reading more FUD than the Feb 12k->6k crash. We have decent volume profile support in this 4.4k region (middle green band), very unlikely to slice through… if anything the brave can go knife catching. US traders waking up in 2-3hrs. pic.twitter.com/XCNrkkYyJ0
— Willy Woo (@woonomic) November 20, 2018
Tone Vays, while not necessarily the people’s champion when it comes to Bitcoin price predictions, saw this trend coming quite some time ago. He identified the $5,000 support for Bitcoin would not last, and a drop to $4,975 was inevitable. Unfortunately for Vays, it did not turn into new support, as the bear market continues without halting in its tracks. This is not a good sign by any means, but there is nothing one can do about it right now.
The $4,975 $BTCUSD target is reached, the big questing now is: Will it bounce the price to bottom of triangle at $6,250 or we consolidate here at $5k before the next leg lower. Unfortunately, right now there are no signs yet of End to #Bitcoin Bear Market:https://t.co/7E6S0n1i6Z
— Tone Vays [@Bitcoin] (@ToneVays) November 19, 2018
A few days ago, NullTX looked at several Bitcoin price predictions prior to this massive sell-off intensifying. As could be seen from those predictions, they all expected the Bitcoin price decline would continue as more time progressed. This current trend only confirms that one prediction of hitting $5m (yes, $5 million) per BTC in the coming years is still possible. It offers some long-term hope for those who are almost ready to give up on Bitcoin first and foremost.
Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency.