While many thought that $6,000 or $6,500 would prove to be significant resistance points for Bitcoin, this has not been the case. Bitcoin blasted through both of those levels and has done the same with $7,000.
Fear of missing out is kicking in for those who were waiting for lower lows in the BTC price, anticipating a buying opportunity at $1,000 to $2,500 that never came. Bitcoin has once again demonstrated its unpredictable nature, rising regardless of well thought out theories, negative news stories, political opposition and the hacking of a major exchange.
The honey badger of money don't care... Bitcoin marches on to its own beat. Keep going BTC... to the moon!
Since the November 2018 crash from 6k, Bitcoin has languished in the 3 to 4k range. That is, until last week when the price surged from $4,000 to $5000. The 5k mark stuck and now BTC has taken the next leg up to $5,250. This move has finally brought some bullish sentiment back into the crypto space.
Optimism is in the air, with a notable increase in Bitcoin online searches, social media posts, content creation, exchange speculation and record CME Bitcoin futures trading. Added to that, from a technical analysis perspective, BTC has moved above the 200 day moving average, which is historically a very bullish sign. As this list of positive happenings builds, the chorus grows louder and louder, that this is the beginning of Bitcoin’s next bull run. Exciting stuff to ponder, considering that the last bull market saw Bitcoin reach an all time high of nearly $20,000 in December 2017. The return to that high and beyond is a day that many investors long for.
So can we say goodbye to the bear market and expect the Bitcoin price to continue moving upwards over the coming days, weeks and months? While there are growing signs that this may be the case, some still caution that Bitcoin has further to fall. Proponents of hyperwave theory believe that the price must decline to $1,000 or lower, before a climb to a new high can commence. While some Bitcoin maximalists take the view that altcoins, such as Ethereum, must die before the bear market can be declared over.
In my view, it is most likely that the bottom for Bitcoin is in, and these are the early stages of a new bull market. Bitcoin to the moon!
Bitcoin has been in a downward spiral over the past couple of weeks, with the price falling from the 6,000s to the 5,000s to the 4,000s and now to the 3000s.
After holding steady for so long in the $6,000 range, many had got comfortable with the stability of the price. BTC had become like the ultimate stable coin. Not so now, as even some long time holders have started to sell, fearing a further price collapse.
For those who invested more than they could afford to lose, selling is an understandable reaction to a sudden fall, after a sustained period of market strength. This is why I repeatedly say, "Never invest more than you can afford to lose." That way, you can afford to hold your Bitcoin, no matter how low the price may go. In a worst case scenario, you can still pay the bills without losing a single Satoshi of your Bitcoin position.
So if you're entering the BTC market now, or increasing your position as the price falls, keep in mind what I have just said. Bitcoin could still go lower and the price may not rebound for a considerable period of time. No one knows for sure. Don't put yourself in a position where further price drops or a sustained bear market force you to sell because you're overextended. Be a wise investor, not a gambler.
Personally, I believe that Bitcoin will eventually return to all time highs and beyond... to the moon! Nothing has changed in terms of its fundamentals and the technology being built around it and to support it. Better days are ahead. Stay strong.
This brilliant song and video clip, 'Bitcoin Please Go To Moon', featuring 'bearish' Tone Vays and 'bullish' Mike Novogratz, was created by 1thousandx.
You will find the lyrics and video below. Enjoy!
Bitcoin please go to moon
Stop going sideways now
Tone Vays say
We going down to 1k
But Mr Novogratz say
Novogratz is bullish
Tone Vays is bearish
[Tone] Bearish target is 1300
Novogratz is bullish
[Novogratz] Bitcoin can be at 40 000
Let us go to moon
Bitcoin's price battle in the 6 to 7k range continues to rage. As you can see in the chart above, the past month has seen BTC navigate a narrow channel between $6,200 and $6,800. Sharp moves in either direction have lacked the momentum required to break out of this zone and push the price into a sustained trend up or down.
While bulls and bears plead their case, a strong hand and a firm belief in the long term future of Bitcoin are required to hold your position in the number one cryptocurrency. Trading and banking on significant price movements in either direction in the short term is a high risk strategy, fraught with danger.
There will only ever be 21 million Bitcoin. History is on the side of an eventual return to the previous high and beyond. Will you still be holding your BTC when that day arrives?
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!
Bitcoin to the Moon is a blog dedicated to following the original cryptocurrency on a journey to its ultimate destination.
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