When to buy and sell Bitcoin: When the price of bitcoin was in a bullish trend, most traders could not take their eyes off the chart. When to sell bitcoin for cash? When to buy? Why is it so difficult to determine when is the right time to sell?
Traders who waited over 3 years after the historic bull run in 2017 may not have had it easy. Others who bought BTC at the low have been waiting for the peak for just over 6 months.
You probably have a certain value encoded in your head that the price of bitcoin will tend to. This idea is strongly influenced by the numbers that you see on charts and in the stories of “cryptocurrency authorities”, for example, on Twitter.
If bitcoin reaches a certain value that someone has determined through much-discussed technical analysis, it doesn’t necessarily mean that it will hold for the next few weeks. Identified trends or patterns operate constantly. Along the way, there are usually a few significant anchors on which to base your predictions. These include supply, volatility, and the 200-day moving average. In addition, analysts predict a short-term correction before continuing growth.
In their forecasts, some reputable analysts urge traders to wait before investing as the price is expected to fall. Other metrics and indicators that signal that an asset is in for a correction are based on the assumption that the previous price was “fair”. However, it is difficult to demonstrate the “fair” value of an asset that has been around for about 10 years. It is therefore difficult to establish a baseline on which to base any estimates. This is because every few cycles new patterns and new peaks are reached.
A sell-off after the local ATH could be a signal that the bears are taking control. There are those who understand bearish corrections in terms of opportunity.
Selling at the current price may be premature
When you ask yourself when to sell bitcoin, you must remember that there is no simple answer to this question. If you are forced to sell, do it wisely. Panic selling is never the best option for your portfolio.
Should you buy bitcoin now?
With the consistent growth of the market for the oldest cryptocurrency, more and more people are wondering if it is worth buying Bitcoin at the current price level? Or is it already too late?
Bitcoin brought its investors very high returns in 2020, despite the correction that occurred recently, the cryptocurrency continues its ascent.
The cryptocurrency market is cyclical, which means that it has stages of ups and downs. BTC is currently in a bull market.
The bitcoin rate in the future may reach $100,000 per coin. Entering this value would mean a revaluation – a good time to sell.
Is it profitable to buy BTC now?
Although there are many signals in the market indicating a continuation of the rally, it is worth remembering corrections so as not to sell off your bitcoin at the first best loss opportunity. The rises in Bitcoin that we have at the moment are quite large and fast, even too fast. There have been several such rollbacks. Bitcoin has fallen but has now regained much of its lost value and is trading at around $52,000 per coin.
Analysts mention the possibility of the so-called double top pattern – that is, the formation of a double top and a double bottom. A similar situation already happened during the Bitcoin bull market in 2013. The value of BTC has dropped by almost half. Immediately after that, there was a strong bounce, which, in fact, pushed Bitcoin to an even higher level than the previous one. Summing up, we can say that the cryptocurrency still has the potential for growth, but it is worth remembering that falls are possible at this time.
What should be kept in mind?
Regardless of how the fate of the price of bitcoin develops, it is worthwhile to understand that any investment is accompanied by risk. People who invested in bitcoin when it was $3,000, $5,000, or $10,000 won’t be too worried if it falls from $40,000 to $20,000 and back again. The situation is quite different for investors who bought bitcoins only for more than $30,000 – they stake much more, and at the same time, their growth potential is not so big.