Interesting title isn’t? Before you come at me with insults and bad mouths, let me explain. We are now at the most critical time in the Cryptocurrency market. Bitcoin has recently flooded media headlines with “expert” price prediction following its 47% gain from recent lows of $6,500 experienced during the end of the month of March and the start of April. The likes of Tim Draper, popular American venture capital investor, is for example predicting Bitcoin to reach a price of $250,000 by 2022 and Fundstrat Global advisor Tom Lee is speculating $25,000 by the end of this year. These are only few examples as other “expert crypto analysts” are predicting prices such as $100,000 by December of this year.
It is important to understand that the mainstream media play a key role in the Cryptocurrency space. They constantly make these unrealistic “rich over-night” claims when things seem to be bullish, creating optimism for your average Joe who invested at all-time highs, hoping that by “hodling” his position, he’ll make good profit or what they often call “Moon and Lambos”. Interestingly enough, the complete opposite occurs in a bear market. Through the months of January to March of this year, positive cryptocurrency articles went scarce as price plummeted and panic settled. During that time though, many cryptocurrencies such as IOTA, GNT, XRP ,and ARC experienced great partnerships, continuous roadmap completions, and overall collective success.
From a technical analysis standpoint, we experienced a surge from a support level of $6500 to a resistance level of approximately $12,000. A higher low was formed and you could hear “Lambos” and “Moon” as the majority of people expected the $10,000 region to hold and reach all-time highs of $19,800 again. Guess what happened after that? A major rejection of the $12,000 resistance level lead the market to rally below $10,000 and only three days later, lower lows commenced to form and $6500 was the next projected target.
That explanation was kind of confusing and unnecessary don’t you think? Well that is my point. Anyone invested in this Crypto space shouldn’t care about what price will be reached tomorrow, next week, or even next month. BE IN THIS FOR THE LONG RUN, FOR THE FUTURE. Today’s prices will not make you rich. However, today’s prices can make you a whole lot of money if compared to the potential higher prices in the upcoming years. Your average investor tends to wait for prices to increase before buying in, not realizing that if anything, he should be buying when prices are low (between January and NOW) and sell when prices reach new all-time highs. Easier said than done, but it is time to understand that to be successful in this space, a plan should be implemented when investing and targets should be set years from now and not next month.
With that being said guys, hope you enjoyed the read and I would love to hear what you think in the comments below 😁.
Legal Disclaimer: None of this is financial advice and I am NOT a licensed financial advisor. The content in this blog is solely meant for informational purposes and IS ONLY MY OPINON. Thank you.