Whenever there is strong dip in price, also referred to a "correction", you will find people posting comments such as this:
"Now is a great opportunity to buy up even more coins, if you're in it for the long haul!"
Let's examine.
I have been through all three previous Bitcoin bubbles and like any person with a sober mind will tell you: We're currently riding the fourth bubble.
Here's the "Anatomy of a Bubble":
Without exception, all previous bubbles have followed this pattern fairly closely (the graph is not to time scale).
The key question is: Where are we now?
Suppose that it's just the "bear trap" and that the true peak lies still ahead - you have little extra profit to make from buying right this moment. You can simply wait until it's clear that it was just a bear trap. In either case, if you want to buy for the long term, it's more likely you will get a better price after the crash.
Suppose that we have passed the peak and we now are approaching the "bull trap", you can buy in the dip, but you should sell before the true fall. The right opportunity to buy and hold (for the long haul) lies way ahead still.
Neither scenario shows an opportunity to buy and hold long term.
Interesting thoughts here for bitcoin. I want to invest some cash into crypto currencies but you're right, it's pretty hyped up right now. Everyone is rushing in. The question is how long will the stream of new investors be steady and are the main currencies already overpriced?
Would love you 2 cents on this question 🤔
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I would say that for Ethereum and the likes it's more likely we're closer to the top than the bottom in the near and mid-term. Look at the market caps, those are not peanuts anymore and it's almost entirely speculation, not usage, that is driving the price.
Sometimes it's best to simply not do anything and accept that you've missed the train and that you should wait for the next one.
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Yeah I understand. Really much speculation is going on there and I will keep my feet still and watch. Also I think it's a good strategy to not invest all your money at once but to spread it over time
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Totally agree... the trend is loosing momentum, and im monitoring the price more careful than 2 weeks ago... short term there are a potential smaller gain, but the correction is evidently in near future
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I am also thinking along these lines. Good post!
Edit: shared it- https://twitter.com/eaglecrypto/status/880031835811717120
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Disclaimer: I am just a bot trying to be helpful.
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The Bitcoin price chart actually looks pretty similar to the 'Anatomy of a bubble'.
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