🔥 Is now time to buy Bitcoin?

By resiliencia | resiliencia | 11 Nov 2020

Hello!

Bitcoin almost touched the 16,000$ mark. Something that we all know that sooner or later would happen. I personally didn't expect this to happen in the middle of a world pandemic, with lockdowns and mobility restrictions in almost all the western countries, but here we have it, Bitcoin price is moving as expected. 🚀

The space is starting to get full of "m00nboys", and when this happens it is usually not good for the price of Bitcoin. Unless a kind of shortage in the Bitcoin offered in the market happens, which some speculate that is happening right now.

Source

Well, I am not going to speculate about what the price of Bitcoin will do short term, because I don't know. And let me give tou a hint: Nobody else does 😉.

What I like to do in this kind of situations is to look at past data and look for long-term trends. One that I like a lot is the Bitcoin yearly lows evolution. Here we have a tweet by @cryptoworld202 with all the data:

Source

At first look, one can think that 15,000$ or 16,000$ is too high to buy Bitcoin, probably we're going to have the opportunity in 2021 to buy Bitcoin at a much lower price, probably between the 5,000$ - 10,000$ range.

But that's not what the numbers say. As you may know, the Bitcoin price movements are cyclical, moving at a 4 year periods which coincides with the halvings. The last 3 years have been a really painful bear market.

What happens when the bull market starts?

2013-2014: The lowest price went x23.
2017-2018: The lowest price went x4.

So, it means that the lowest price could go as low as 20,000$. At least this is something that we should consider.

Conclusions

As simple as that: