After a parabolic rise from $10,000 to $17,000, Bitcoin pulled back to just below $15,000. In the brief time since then, the price has been choppy, moving between the low mentioned and slightly above $16,000. At the moment it is trading at $15,200.
Considering how fast and how far Bitcoin went up in a matter of days, this is not a major correction. Doom and gloom talk of a bursting bubble did not come to pass and the king of cryptocurrencies once again proved to be strong and resilient.
Significant pullbacks earlier this year saw Bitcoin bounce back quickly and set new all time highs. Once again it appears that Bitcoin is building and strengthening for a repeat of this scenario.
Hopefully, if you bought in at the $17,000 peak, it was with money that you can afford to lose. If not, this is when a price pullback like what we have just seen can hurt you. The fear of further losses, and the inability to absorb them, can lead you to panic sell and take the loss. Whereas, investing only what you can afford to lose, gives you the ability to wait for a rebound, whist still being OK if instead the price falls a further $2,000 or more.
As we saw in the price crash of late 2013, having the ability to hold Bitcoin long term despite the current circumstances can pay off big time. For more information about this, read Lessons Learned from the Bitcoin Crash of 2013.
Bitcoin to the Moon is a blog dedicated to following the original cryptocurrency on a journey to its ultimate destination.
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