If you have been tracking Bitcoin movements for the last couple of months you would have noticed that every time it tries a bullish run it suddenly stops and starts correcting. When people think it is going to fall to all time lows it suddenly stops falling and starts a rebound. Considering crypto currencies are a relatively new phenomenon compared to stocks, derivatives, commodities and forex I have not seen a single trading expert who can say with certainty which way BTC will move. This is made much more complex by the whale manipulations and recent institutional involvements by banks and private funds.
This movement will get more erratic as we move ahead to the next BTC halving that will happen in May. Some people say BTC will shoot up to unprecedented all time highs also called “to the moon” with expectations ranging from $100,000 to 1,000,000 and at the same time many contrarians are warning that the price appreciation linked to halving has already been done in 2019 and 2020 might in fact see some correction. Considering that BTC always does the unexpected nobody is really sure what exactly will happen in 2020.
One thing though is certain that once the correction happens there will be some movement and another wave of increased interest and news coverage and speculation about bitcoin. You will suddenly see everyone talking about it ranging it from your relatives who have not talked to you in ages, your pizza delivery guy who wants to know if you would like to tip in BTC, random office colleagues who think bitcoin mining is done underground in deep caves in China. This would also mean that everyone would suddenly want to get some BTC. At this stage what will really matter is that you are clear why exactly you want Bitcoin and not make a rash decision based on what you hear from others or see the majority doing.
Your main motivation for Bitcoin can be either of the following
- Fast Buck: Who won’t like to double their money overnight so once the price starts to moon you will see many people breaking their piggy banks and putting all the money in Bitcoin and then selling it at a loss once it corrects 50% over the next week. If your interests are completely monetary you need to back it with solid technical analysis and have clear targets set for what are your target prices to sell and what are the stop loss levels you are going to maintain no matter what you feel emotionally.
- Revolutionary: This group of people includes the HODLers who have complete faith in Bitcoin’s future and don’t get charged by sudden price movements. They believe they will live to see the day when fiats will die a slow and painful death and Bitcoin will reign supreme. Many in this category will never sell their BTC and rather use BTC to make their big purchases in future. For this category whatever BTC price does in 2020 does not really make a difference
- Bit of Both: This category includes my kind of people who have faith is future utility of Bitcoin but they make sure they book their profits regularly so whenever they see a big bull run they sell a part of their portfolio and whenever they see “Blood on the Streets” (I love this phrase for bear market used by Alessio Rastani) they buy more of their favourite crypto.
You can be either of this category and I feel all are right in their own way. Only thing which is important is to do some soul searching within and be clear about what you want so you don’t blindly follow others or give in to FOMO during the next big move by Bitcoin.
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Originally posted on Uptrennd by me at - https://www.uptrennd.com/post-detail/why-do-you-want-bitcoin~MTk1MDM4