Bitcoin has finally broken to the upside, crossing the $7,000 mark after an extended battle in the mid-6,000s. This is welcome news in a market that has seen many people in the crypto space, down and discouraged about the BTC price, despite its fundamentals being stronger than ever.
Some traders say that this Bitcoin price spike is a 'dead cat bounce' or 'short squeeze' that will soon be followed by new yearly lows. While some hodlers predict an incoming all time high. I say that short term price movements don't matter, unless you absolutely have to sell due to immediate financial stress or having invested more than you can afford to lose.
Otherwise hold. The 2020 Bitcoin halving, when the block reward will reduce from 12.5 to 6.25 BTC per block, is less than two years away. Remember what happened to the price leading up to the last halving and in the year that followed? I'll give you a hint... Bitcoin to the Moon!
Bitcoin finally had a price breakthrough this week, after an extended battle around the $6,000 mark. The original cryptocurrency shrugged off the calls of some for even lower prices and stepped up more than a thousand dollars to a new line of resistance.
$7,500 is that line, where Bitcoin is currently moving horizontally, building strength for a further breakout to the upside. If successful and made with enough momentum, the next surge upwards could break the back of the bear market and see the bulls return. When they do, the countdown to blastoff will begin, and Bitcoin will launch to new all time highs and beyond ... to the moon!
Bitcoin’s fall from the December 2017 high of $20,000 to the current $6,000 level has been a painful one. Every time it looks like a recovery is on the way, the price falls again and the battle at 6k resumes. Some commentators say that the BTC bear to bull switch is near, predicting a rise to all-time highs, and in some cases, extreme highs, dwarfing 20k. Others say there’s more downside to come and the possibility of a lengthy period at lower prices, with some believing a fall to pre-bull market levels could occur. The truth is, no-one knows for sure. So what do you do? How do you survive the Bitcoin bear market?
While there are no easy answers, here are four steps that I believe will help to point you in the right direction.
1. Evaluate your personal financial situation.
If you have invested in Bitcoin only what you can afford to lose, then you are in a powerful situation. If so, you can hold your Bitcoin at least until, if history repeats itself, the price rises to a new high. On the other hand, if you cannot afford to lose all or some of what you've put into Bitcoin, then you have some decisions to make. How long you can survive with the price at current levels? What would the consequences be if the price fell further? Once you've carefully considered these things, proceed accordingly to secure your finances. Don't leave it to chance or the whims of the market.
2. Update your knowledge about Bitcoin, its history, use cases and supporting technologies.
If you're fairly new to Bitcoin and have never endured a bear market before, then it's time to do some research. Take a look back at the price journey of Bitcoin since it was first traded in 2010 (in 2009 it didn't have a price). Watch videos and read articles by those who have endured BTC crashes and bear markets, gleaning knowledge and tactics from their triumphs and tragedies. Learn about the development of hardware wallets, the lightning network, second layer security solutions, exchanges, and companies and counties investing in Bitcoin. All of this will help to build a foundation of confidence in the long term future of BTC that is based on knowledge. This might just be what gives you the courage to hold when you're tempted to sell.
3. Analyze what you believe about the long term future of Bitcoin.
Once you have increased your knowledge in the areas discussed in Step 2, it's time to have an honest look at what you really think about Bitcoin. Do you believe that BTC is a strong technology that the world desperately needs and that it's here to stay? If not, you'll find it far more difficult not to sell during the bear market. This is because deep down, you may not have the confidence that Bitcoin will survive, let alone return to the previous high and beyond. Alternatively, if you're convinced that Bitcoin is here to stay and that adoption and supporting technologies will continue to grow, you will be able to hold for the future.
4. Devise a plan for your Bitcoin investing going forward.
This final step is vital, as it's easy to make snap decisions during a sudden market move, unless you have thought things through beforehand. Never panic buy, never panic sell and never invest what you can't afford to lose are my rules of thumb. Decide if you're going to continue investing in Bitcoin while the price is down. If you are, then determine how much and what your investment strategy will be. You could put in all of your allocated funds now, at an anticipated price point in the future, or dollar cost average a certain amount at specific intervals over time. Each option comes with its own potential risks and rewards, depending on price movements. The upside is that no matter how you invest, if it's preplanned, you are less likely to make rash decisions or to risk money that will devastate you financially if it's lost. Hold on long enough and you might just join those who held throughout the last bear market. They survived to see an all time high beyond their wildest dreams.
Less than two months ago in early May, Bitcoin made a run at $10,000, falling just short. Since that time, the price of BTC has been in gradual decline and has now gone below $6,000 to its lowest point in 2018.
To put things in perspective, one year ago, Bitcoin was trading around $2,600. So despite the painful experience of falling from the mid December high of nearly 20k, all those who invested this time last year or earlier are still well out in front. On the other hand, investors who entered the market during the rapid climb to the peak have felt the full force of huge losses — particularly those who put in more than they could afford to lose.
As always, not needing to sell when the price goes south is a huge advantage, especially if the bear market conditions last for months or even years. It means that if Bitcoin history repeats itself, you will still be holding your BTC when it eventually climbs to reach new all time highs.
At the moment, however, new all time highs seem far off, as even some hard core Bitcoin maximalists, optimistic bulls and long time hodlers have seen discouragement set in, to the point of selling part of their BTC holdings. From my perspective, yes, it is discouraging to witness the fall from the Bitcoin bull frenzy of 2017. Then again, nothing has changed in terms of my belief in the technology behind Bitcoin, its use case and the innovation it is driving.
The price is down for now, however, the fundamentals of BTC have never been stronger. Stay strong too, my friend, for Bitcoin's journey is far from over. There is still a destination to reach. Bitcoin to the Moon!
This week, Bitcoin has climbed in price from below $8,000 to over $9,700 where it sits at the time of writing. As you can see from the chart above, this rise has been mostly a steady upwards trend, rather than one or two giant spikes.
$10,000 is a significant psychological barrier and breaking this could see a substantial move to the upside, as has happened on a couple of previous occasions. Is this the beginning of a trend that will take Bitcoin beyond $20,000 to a new all time high? I hope so. Bitcoin to the Moon!
The Bitcoin roller coaster took investors on a white-knuckle ride today, that the chart above depicts perfectly. Steady at $8,100 followed by a $200+ vertical drop, then steady around $7,900 followed by a $200+ vertical spike.
If you've recently entered the Bitcoin market, such rapid and dramatic price movements can be a scary thing. Fear not, for if you've invested only what you can afford to lose, history is on your side if you hold.
Bitcoin has been through many rises and falls, surviving huge crashes and extended bear markets. Such events have seen it declared over, finished and dead by the mainstream media. Each time, however, BTC has eventually bounced back and risen to new all time highs.
Bitcoin is going to the moon. Will you still be holding when it does, or longingly gazing at BTC from a distance?
Since Bitcoin surged more that $1,000 in an hour on Thursday, the price has held steady in a narrow range between $7,900 and $8,200.
Opinions in the Bitcoin community are divided over whether this is the end of the bear market or not. Some believe that the strong fundamentals of Bitcoin, including wider adoption of SegWit and implementation of the Lightning Network, have laid the groundwork for a bull run to new all time highs. Others are of the opinion that the rapid price jump was merely a short squeeze and that BTC is still in a downward trend.
One area where there is agreement, however, is that the long term future of Bitcoin is bright and there are bigger and better things to come for the original cryptocurrency. Bitcoin to the moon!
Over the past hour the price of Bitcoin has surged more than one thousand dollars from $6,870 to above $8,000, and has just dipped back below that mark.
So, are the bulls back or is this a bull trap? At this stage, no one can be sure. Hold. This is a dangerous environment to trade, indeed.
Stay tuned for updates regarding possible reasons for the sudden price spike.
The Bitcoin price has been hit hard over the past 24 hours, falling below $7,000. Back in early February this year, Bitcoin also fell to this level, only to rise above $11,000 within two weeks. This time, however, the question is, will the same level of support bounce the price again or is there more downside to come? Popular Bitcoin trading expert, Tone Vays, today called a 20% chance of BTC falling all the way to $1,300. He has been speaking of this level for a long time, as a previous high that was never retested.
With significant drops in price, and fear, uncertainty and doubt in the market, strong hands are needed to avoid panic selling. During these times, I believe it's important to remember how Bitcoin has faired in downturns and crashes in the past. If history repeats itself, then those who can afford to hold are all good. Here's a recap ...
In 2011, the price peaked at $32 before crashing and entering an extended bear market that took it all the way down to $2. That's a correction of more than 90%. Next, in 2013, the Bitcoin price climbed from $13 to $1,100 before crashing and once again entering an extended bear market. This saw the price retrace to a low just above $200 — ouch!
Those who held their Bitcoin throughout these seemingly catastrophic crashes were richly rewarded. Panic selling, on the other hand, led many to regret their decisions.
Whatever happens in the next year or two, I think there will be a bull run leading up to the 2020 halving, followed by a post halving dip and then through the roof in 2021 — to the moon, even. This is based on what happened leading up to the 2016 halving and then into 2017. It's supply and demand. Of course, for whatever reason, it may play out differently. This is simply my best estimation.
A year ago the price was $1,000, in December it went to almost $20,000 and now it's $6,900. It's been one crazy ride that may well continue. A bull run to $100,000 followed by a crash to $20,000 certainly wouldn't surprise me at all. In the end, hold, hodl, don't sell unless you have to.
In the past seven days, Bitcoin has been above $11,600, below $8,500 and is currently trading around $9,500. Panic or positivity amongst investors has swayed with the latest offerings from the Bitcoin news cycle, whether the stories be true, false or exaggerated.
Times change, stories come and go, the price goes up and down, but Bitcoin itself remains solid and secure. It is still the number one cryptocurrency and the only one that is truly decentralized. There is no founder pulling the strings or tossing up whether transactions should be reversible.
Bitcoin has proven its resilience through years of varied market conditions and it has survived despite attacks from within and without. No one controls Bitcoin and no one can control it. The same can not be said for other coins within the crypto space.
SegWit adoption is bringing cheaper transactions, the Lightning Network is bringing faster transactions and it's still early days in terms of supportive technological developments.
If you're on the Bitcoin roller coaster, hold on tight. For many, doing so has turned fear into exhilaration.
Bitcoin to the Moon is a blog dedicated to following the original cryptocurrency on a journey to its ultimate destination.
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