The crypto markets started 2021 with a bang but ended it with a wimp. While bitcoin has been on a downhill slide since last November, everyone is wondering whether it is a good buying opportunity or not.
Usually, such downturns can present a smart investment move as bitcoin is on sale. However, some may not agree and give in for FUD (Fear, Uncertainty, Doubt).
Even though there are plenty of reasons for this drastic drop in bitcoin price, in this article we’ll investigate whether you should buy or not buy bitcoin now?
Will Bitcoin Price Drop Further?
Though on paper, the short answer is yes, it might. Despite the fact that many crypto analysts predicted bitcoin to hit six figures by last December, their expectations didn't match reality at all. In a matter of a fact the crypto winter arrived since November as BTC price has been bearish pinned under $50K level due to a storm of bad news that sent waves of fear and shock across the whole crypto market.
Things on the altcoin front aren’t going much smoother, as the whole market has dipped 30% from its high in November 2021. Unfortunately, this has led to widespread fear in the crypto markets, although for many Bitcoin HODLers, this is just another day in the office.
“Unpredictable” is the most common term used to describe the crypto industry at this point. That being said, many analysts believe that more dips due to sell-offs can occur in the coming month.
Should You Buy Bitcoin Now?
Well.. while we think that every trader must benefit from such ebbs and flows of the market, waking up to cheaper bitcoin is always wonderful depending of course on your tolerance for risk and turbulence. Although to some traders this last dip was kind of alarming and reminded many of them with the 2018 meltdown of the bellwether cryptocurrency, where it lost almost 80% of its value, chances are BTC will always survive breaking below $40K.
There is a saying popular among crypto traders which is “in bull markets you make opportunities, while in bear markets you make money”. We believe that both bull and bear markets have different kinds of investment opportunities even when pessimism prevails in bear markets. If you decide to buy bitcoin and you're a risk-averse kind of trader, keep in mind that the best investment strategy in HODLing for long periods of time. So if you are willing to stock up some bitcoins while they're more affordable, and not feel sad or sorry if you saw the price dip further or if you’re able to hold on to your coins and not sell for months, buying some BTC may be a good fit for you. Otherwise, maybe you should wait for clearer signs of the markets.
Just like any other investments, bitcoin has some strengths and weaknesses. While daily bitcoin charts might look scary and alarming in red, we believe that in doubt you should zoom out. And even though the world’s most well-known cryptocurrency has shed almost 36% since its peak in 2021. However, BTC is still up 22.26% on a yearly basis.
Realistically speaking, not every dip is a good buying opportunity, so we advise that you do your own research on the bitcoin market status daily to spot the perfect buying chance. Also, “buy on the rumor, sell on the news", has proven itself to be a good piece of advice.
Disclaimer: The Cryptocurrency market is considered highly speculative, risky, and largely unregulated. Anyone mulling investing in it should be aware there's a risk of losing their entire investment. This article is for informational purposes only and should not be taken as investment advice.
