Looking at this chart, you might be thinking, “is Bitcoin going to crash?”
Let me use this post to explain why it’s all about perspective and why almost everyone investing in a volatile asset like this often end up selling too early.
In other words:
It’s all about how you read the chart above.
And how the pros read it.
This is the same chart from above, but in a logarithmic scale.
A linear scale cannot justify representing all the moves Bitcoin had since inception in a single chart legibly.
A logarithmic chart, however, does.
This Logarithmic Bitcoin chart paints a very different picture when you compare it to the one above.
Now ask yourself again, do you still want to sell your Bitcoin?
If you’re still on the fence, keep reading…
Why is Bitcoin Rising?
Well, Bitcoin isn’t rising, but it’s following a predictable path.
We in the Bitcoin community realize the fact that Bitcoin follows a price appreciation after every havening cycle.
A havening cycle is simply an event that occurs every 4 years, which reduces the supply of Bitcoin that gets mined every day.
So economics 101, less supply… more or same demand… the price of Bitcoin appreciates.
It has followed this pattern since its inception.
The last havening happened back in May 2020, and if you look at the price of Bitcoin since then, it has only gone up.
When is Bitcoin going to crash again?
Naturally, that will be your next question.
Well, the answer is, not anytime soon.
If Bitcoin had the same percentage gains this time around as it did from its 2015 low to its 2017 high, then its next target would be more than $360,000 which is also my Bitcoin target for 2021.
Now, this number is just from considering past data.
But this time… it’s different.
This bull run has largely been run by the institutional players, the strong hands as we call them.
They aren’t putting down their lunch money or savings into this. Their 1% allocation is in millions or sometimes billions.
Are you too late to buy Bitcoin?
Another question I get asked a lot, and here’s my advice:
Stop looking at daily prices and just think of it as a long term hold.
Over any period of 3 years, you’ve always made a profit buying Bitcoin at whatever level.
But just buying in at one time isn’t so smart, you need a strategy.
My fool-proof strategy to buy Bitcoin:
- If you have no Bitcoin, buy some today.
- Set your target and Dollar-cost average (for example you say to yourself, I will keep dollar-cost averaging every month until Bitcoin reaches $50,000)
- Buy any massive dips that present themselves.
- And finally self custody your Bitcoin.
That’s literally it, you’ve got yourself an investment plan now go and do it.