Last Friday of the month, the Bitcoin market is always more volatile. Why is that? Simply because options are expiring and this induces volatility in the Bitcoin price in the short term. When this is coupled with Thanksgiving, you have a Bitcoin roller coaster ride that puts some investors' nerves on edge.
After unsuccessfully trying to break the $60K resistance on November 25, 2021, the price of Bitcoin is around $54K today as I write this.
No worries from my side, as the upward trend is still favored as long as Bitcoin does not break its support around $52K-$53K:
Market sentiment currently oscillates between moderate fear and neutrality:
If there's one fear you should have right now, it's the fear of not accumulating enough BTC for your future. This is the only fear I find legitimate at this stage of the Bitcoin revolution. I'm not telling you to fall into FOMO (Fear Of Missing Out) mode, but rather to take advantage of every opportunity to accumulate more BTC.
What is happening now suggests that the bull market in this post-Halving market cycle will be longer than the previous ones. The situation is indeed exceptional with a COVID-19 crisis added to the mix and monetary policies triggering great monetary inflation.
This changes the usual projections for a Bitcoin market cycle. So we have to accept the idea that this cycle will be longer than the previous ones. This is what some people frequently repeat when they put forward the idea of a supercycle for Bitcoin this time.
I agree with this analysis and I am not alone when we see the reserves of BTC on the exchange platforms which keep decreasing week after week. The strong hands have great confidence in what will happen to the price of Bitcoin in the weeks and months to come. The $100K is still a possibility in the weeks and months to come. Maybe not as soon as we all anticipated, me first.
Nevertheless, it is only a matter of time. The digital scarcity invented by Bitcoin has yet to become apparent to the majority of the Earth's inhabitants, which lets you imagine the explosion of demand to come. On the other hand, the supply of BTC will always remain fixed at 21 million units. Applying the principles that govern the law of supply and demand, this promises a phenomenal increase in the price of Bitcoin over the next decade.
To take advantage of this, you will need confidence and patience.
Confidence will allow you to accumulate as much BTC as you can. The current situation is a great opportunity in my opinion. That same confidence will help you to be patient so that you can be among those who will benefit the most from the Bitcoin revolution.
Of course, some people tell me that they want to accumulate more BTC by playing apprentice trader. This involves trying to time the market. That's a risk I'm not willing to take, but I understand why some people want to take it. As always, it's up to you to make your own decisions to best protect your money's future.
If that's the case, you might want to consider a scenario where the price of Bitcoin could break $52K and break out of its uptrend. By selling your BTC just before that, you could be left with more afterward. But the big question you'll have to answer is: when to re-enter to buy more? The greed inherent in every human being may cause you to wait lower and lower.
And when the trend reverses again, you will still be waiting for the price of Bitcoin to fall again. You'll waste a lot of time, and probably money, playing around with this type of trading. It's up to you to decide whether it's worth risking the peace of mind of a Bitcoin HODLer.
In any case, remember that it is when everyone is afraid that the best opportunities are found, to quote John D. Rockefeller:
“The way to make money is to buy when blood is running in the streets.”
It's up to you as always.