Bitcoin is among the best examples of a speculative commodity since it only exists in digital format and we have accurate prices since basically its inception in 2009.
Historically, once reached a new major price-peak, Bitcoin has (quite easily) lost up to 90% of the previous gains (occasionally even more than that) and then slowly gained steam again until reaching a new peak, for example:
a. Bitcoin went from 31 USD to 2 USD in late 2011;
b. From 266 USD to 100 USD in mid-2013;
c. From 1,242 USD to 200 USD in 2015;
d. From 1,100 USD to 750 USD in early 2017.
Following more or less this pattern, Bitcoin started at 0.01 USD sometimes in 2009 and eventually reached 3,000 USD value in June 2017.
As of July 2017, Bitcoin has now retraced back to low 2,200 USD (already losing in just a single month 45% of the gains traced above the previous major peak of 1,200 USD).
Given that the previous major peak (2013) was at approximately 1,200 USD, I would not be surprised for Bitcoin to retrace down to approximately 1,200–1,400 USD and then slowly “recharge” until it will reach a new peak way above 3,000 USD.
Only time will tell.
This is not an investment advice.
You should invest only what you can afford to lose.
Even though the price is high, is it still a good time to invest in Bitcoin and other cryptos for the long term?
Bitcoin’s price is extremely low.
It might seem that $2,500 is relatively high but that’s actually pennies in comparison to what Bitcoin is about to achieve.
Because of the limited supply vs increasing and already high demand, Bitcoin will climb to extreme highs.
