The price of bitcoin has fallen below $100k once again. “buy the dip” The cheerleaders come out to play.
Here’s a new perspective: don’t purchase the dip.
Please let me make it very clear before I proceed that this Take does not contain any investment advice.
Why would I ever say something like that? Do I suddenly hate bitcoin?
No.
There are other reasons why I would make such a claim.
I am trying to stop you becoming exit liquidity People like this are not welcome.
You guys don’t need to worry.
The retards will be here soon. pic.twitter.com/1YL8keRHYa
— Breadman (@BTCBreadMan) January 8, 2025
Second, I only buy bitcoin when there is a real discount and not when it looks like one.
Let me explain.
Bitcoin is currently trading at about 13 percent off its record high. In the traditional world of finance, that’s an impressive discount. But in bitcoin it’s just a small daily fluctuation.
It is a good idea to get a hold of a local expert. four-year bitcoin cyclesBitcoin’s value tends to soar in the months and years following its launch. halving. The price of Bitcoin tends to plummet in the following year. The price of bitcoin reaches a new low during that period, usually in the same range as the previous cycle’s peak.
Let me explain.
By 2022, we will see the final “pretty terrible” year, bitcoin’s price dropped to about $15,500, which was actually about $3,500 lower than bitcoin’s top from the previous cycle — $20,000.
In 2026, if something similar happened again, bitcoin would be worth approximately $53k (23 % below the all-time record high price of $69k from previous cycles). This would represent a substantial discount, and it’s worth purchasing.
This is not to discourage you from pursuing a strategy like dollar cost averaging, which I believe is one of the most effective strategies for retail investors. It’s because I wouldn’t hesitate to tell a family member or friend that now would be a great time to invest in bitcoin. “not really.”
I try to maximize the financial upside (in fiat terms) of investing in bitcoin as much as possible for those who ask me about investing in it — especially those who are new to it. While I can help someone to trade into and out of bitcoin in the coming year, this is not something I like to do, since I want people to hold on to bitcoin over the long term.
Frankly, I think the U.S. may announce that they are a Strategic Bitcoin Reserve And other countries may soon follow. You can see the countless companies buying bitcoin for their treasuries!
The same is true for other things. Bhutan selling bitcoin So have other things. Germany selling bitcoin You can also find out more about the following: Tesla selling bitcoin.
In the past, bitcoin’s price cycles were all similar. Although it appears that bitcoin prices will continue to rise, when the time comes, we may see a drop in price far below this level.
Then I will be buying proactively.
The article below is an overview of the topic. Take. The opinions expressed here are those of the authors and not BTC Inc. or Bitcoin Magazine.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: bitcoinmagazine.com
