Anxious about Bitcoin’s price fluctuations? Here is the food for reflection
If you have been following Bitcoin [BTC] and the crypto market in general in recent months, the chances are high that you will feel a little bitter. Unless you happen to be one of the Bitcoin critics and doomsday criminals, then you can shine with joy.
It is difficult, especially for beginners with crypto investments, to avoid panic as cryptocurrencies continue to crash. However, there are several reasons why you should stay calm and trust Bitcoin.
First, Bitcoin’s historic performance is full of massive upswings and sharp price declines. The bull run in 2017 and the crash in 2018 are perfect examples of the effect of crypto’s volatile performance.
The King’s historical performance also reflects the premise that crypto is a long game. Disappointment often awaits those looking for short-term gains. After the crash in 2018, Bitcoin took a while to recover and finally passed over the 2017 high in 2020. It may take more than a year before Bitcoin has reached its current all-time high (NOTE) if history has to repeat itself self.
Identify the bottom
It is almost impossible to accurately time the bottom. However, there are always signs to look for when the bottom is close. Bitcoin bottoms are often characterized by increased RD & D and statements, such as “Bitcoin is dead.” The latter has already begun to emerge.
Bitcoin’s pricing model is currently showing signs that the current bear market is nearing a bottom. The average price of $ 20,281 traded below the realized price of $ 22,441 on June 29th. The MVRV ratio also fell to 0.90 on 28 June.
Source: Glassnode
The alignment of these observations in the Bitcoin pricing model has historically been followed by a significant increase not long after. Large Bitcoin acquisitions often take place close to these levels.
And one such example would be MicroStrategy CEO Michael Saylor, who on June 29 announced that his company added 480 Bitcoin worth about $ 10 million to its portfolio.
MicroStrategy has purchased an additional 480 bitcoins for ~ $ 10.0 million at an average price of ~ $ 20,817 per share. #bitcoin. From 28.06.22 @Mikrostrategi has ~ 129,699 bitcoins bought for ~ $ 3.98 billion at an average price of ~ $ 30,664 per bitcoin. $ MSTR
– Michael Saylor⚡️ (@saylor) June 29, 2022
It is also worth noting that 3iQ CoinShares Bitcoin ETF and Purpose Bitcoin ETF Holdings still hold a significant amount of BTC. This is after selling off a huge amount of Bitcoin earlier in June, which resulted in strong sales pressure.
Source: Glassnode
The sale means that the two ETFs also hold a significant amount of cash. The right conditions can make them make a big purchase, which can end up creating a lot of bullish pressure. It is also wise to identify risks that may trigger several disadvantages. The same ETFs can sell out more BTC, pushing prices lower. However, this means that they will sell at a loss, and that would not make much sense.
