The rally that began in early October when the price of Bitcoin was $43K has continued in the best possible way over the past few days as Bitcoin beat its All-Time High (ATH) of $66.9K on Wednesday, October 20, 2021.
This represents a +55% increase in the price of Bitcoin in just 20 days.
The launch of the first Bitcoin ETF, based on futures contracts, obviously played a big role in achieving this new ATH. This ETF has been a huge success. The ProShares Bitcoin Strategy Fund ETF, based on Bitcoin futures contracts, was the second-largest traded ETF in the market by volume on its first day of trading. No less than $570 million in invested assets for just over $1 billion in trading, in a single day of trading.
It is an understatement to say that American retail investors rushed to buy this ETF.
A second ETF has just been approved by the SEC, and more are expected by the end of October. In November, the final verdict on spot-based Bitcoin ETFs could have an even bigger impact on the Bitcoin market.
The price of Bitcoin never rises in a linear fashion
Following this new ATH, novice investors once again imagined that the price of Bitcoin would soar straight up to $70K, and then $100K.
If you've been in this market long enough, you should know that things never work out that way. The price of Bitcoin never goes up linearly. Bitcoin is a free market where each user is free to determine the equilibrium price.
De facto, such bullish surges often give way to more or less significant corrections. This is once again the case, as at the time of writing the price of Bitcoin is around $60.5K.
A local low of $59.8K was reached in the last few hours.
I see some people starting to panic and talk again about the beginning of a Bear Market for Bitcoin. Rest assured, I do not think we are in a Bear Market. Far from it!
Take a step back to see that a $60K Bitcoin is a harbinger of something even bigger for the weeks and months to come
You need to learn to take a step back in the Bitcoin world. Without that, you will never be able to profit from the Bitcoin revolution. Remember where we were in late September. Remember where we were in the early summer of 2021. Back then, you would have signed up right away for a $60K Bitcoin on October 24, 2021.
Those who panic now and sell their Bitcoin right after an ATH will have huge regrets in a few weeks. Q4 2021 will be phenomenal, and the current correction in the price of Bitcoin is a great thing to cool the market down before going higher by breaking the $70K barrier.
The best thing you can do in this situation is to stay calm and wait patiently, taking care of the safety of your Bitcoin. Selling your Bitcoin hastily is one of the five big mistakes that put your Bitcoin at risk. I repeat this frequently, but in a few years, I think those who sold today at $60K will be seen in the same light as those who sold in 2013 at around $1,000.
Believing in Bitcoin and being patient is a strategy that has proven effective more than 99% of the time since Bitcoin's inception. For me, this is the number one rule for taking full advantage of Bitcoin in a safe, yet calm manner.
The current situation favors Bitcoin HODLers who are confident in its revolution
Bitcoin is a market that favors HODLers over traders. It's up to you to be on the right side, especially if you don't have the specific skills that trading requires.
For the next few days, we could have a sideways consolidation above $60K with Bitcoin in the $60K-$65K area. That's a pretty wide area, but you should only be prepared for the relative boredom that represents the time when big hits are built:
Then Bitcoin will take off again. The $100K remains as relevant as ever for the many reasons I have already mentioned in the article “Be Ready for the $100K – The 11 Things That Point to a Phenomenal Q4 2021 for Bitcoin”.
This is just my opinion and should be used as food for thought. It's up to you to determine the best strategy for your money based on all the information you can gather by doing your research. In the end, it's still your money, and it will be up to you to take action.
Stay strong, Stay a Bitcoin HODLer.