That's it, The show is over! The bitcoin bull run has officially ended and now is the time you need to sell all of your coins before the price drops even further!
Unfortunately for many newcomers to this space, this could be the very first large price correction they have ever experienced. And let's be honest; no one is ever really mentally prepared for their first big drop. The price of BTC in January had reached a high price of approximately $42,000 and has since dropped all the way down to $28,000 before bouncing back up a bit at the time of writing this article.
Like I just touched upon above. If you're encountering this kind of price action it is very likely that you might begin thinking about just why you got into this market in the first place, and then thoughts of quickly selling out of your position will begin popping up in your head.
But this is why it is so important to maintain a low-time preference. When you first began investing into the bitcoin market how long were you expecting to hold your position? If you were planning on being a short-term trader then by all means this price drop should have you worried and very well could have liquidated your position.
But if you are in this for the long term; I'm talking several years, then this little drop should not even have you phased.
The exact reaction I had to this price drop may surprise some of you. When I saw the price dropping I never for one second even considered selling my position; nor did I ever regret going so heavily into bitcoin. As I saw the price dropping I immediately glanced at my calendar checking what day it was. How close was today to my work payday. My first thought was that I wanted to take advantage of this great buying opportunity, and that has time after time been the winning strategy in the cryptocurrency markets. The money being made from investing isn't on green days where the price is going up, but on these very red days. I often think of the investing quote that goes, be greedy when others are fearful, and fearful when others are greedy.
The amount of bitcoin FUD news that has been circulating the news circuits the last week or more is truly fascinating.
"First they ignore you, then they fight you, then they join you."
Towards the end of 2020 and early January the price increases for Bitcoin looked unstoppable and it is very possible that many powerful players did not want this to happen, or merely weren't ready for it to happen yet. This could be government officials wanting to keep traditional currencies in tact, which means governments could keep all of their power. Or it could also be giant whales are still wanting to accumulate more to reap the rewards after the price goes up even further. In my mind it is probably a combination of both.
Talk of new legal regulations, lawsuits from Craig Wright, a double-spend on BTC and the list goes on.
But what should you do?
Like I mentioned above, try to keep a low-time preference sticking to the goals that you originally set. Then continue to dollar cost average. Whenever you get paid, invest some of that into bitcoin. Also always have some cash set aside and ready to take advantage of some great price dip opportunities. And if you are really wanting to accumulate more you can try to find an extra income by selling miscellaneous items around your house or even blogging.
Doing everything that I just mentioned has helped me accumulate more during the last year than I thought would be possible. If I can do it, than I know that you definitely can too!
So I want to know, did you take advantage of the price dip!? What are your strategies for accumulating more bitcoin!
Also as I was putting the final touches on this article, it appears that bitcoin is already beginning to recover. Hope you took advantage!
As always, thank you for reading!