Don’t Buy The Bitcoin Dip

Don't Buy The Bitcoin Dip

With bitcoin’s price dipping significantly below $100k again, the “buy the dip” cheerleaders are out in full force.

But I’m here to offer a different perspective, which is simply: Don’t buy the dip.

Before Let me be clear, nothing I have written in this paragraph is a part of the contract. Take Investment advice is a type of financial planning.

Why What if I said such a word? Is Why do I suddenly hate bitcoin?

No.

There are other reasons why I would make such a claim.

The first is that I’m trying to keep you from becoming exit liquidity for people like this:

The second is that I like to buy bitcoin when it’s truly selling at a discount, not just when it appears to be selling at one.

Let me explain.

Right Bitcoin is currently trading at a discount of about 13 percent to its previous highs. While that may be a significant discount for an asset in the world of traditional finance, it’s hardly more than a daily fluctuation in the world of bitcoin.

In the four-year bitcoin cycles, bitcoin’s price tends to skyrocket during the years of and after its halving. And then the year that follows tends to be pretty terrible for bitcoin’s price. During that year, bitcoin’s price hits a low, which tends to be in the range of the prior cycle’s high.

That I’ll give you an illustration.

In 2022, the last “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.

If something comparable were to happen in 2026, we’d see bitcoin’s price at approximately $53k (23% below the previous cycle’s all-time high of $69k). NowIt would be worth purchasing if you get a discount of that magnitude.

I don’t share this perspective to dissuade you from continuing with something like a dollar-cost averaging bitcoin investment strategy (one of the best strategies out there for the average retail investor). Instead, I share it because if a loved one came to me and asked me if now was a good time to buy bitcoin, I’d say “not really.”

Read the article:  Gary Gensler's Departure Is No Triumph For Bitcoin

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. And while I could maybe help someone trade in and out of a bitcoin position in the next year or so, I don’t like to do this, as I encourage people to buy and hold bitcoin for the long haul.

But, FrankThe U.S. could announce that Strategic Bitcoin Reserve Other nations could follow! And Take a look at how many companies are buying Bitcoin for their own treasury!

YesThese things happen, as do things like Bhutan Selling bitcoin has many benefits. Germany Bitcoins for sale Tesla Bitcoins for sale

Up Until now, bitcoin’s price cycles were all similar. SoWhile it appears that we will have another bitcoin-price increase in the coming year, I believe we’ll be dropping much lower than our current level of price when things turn around.

And that’s when I’ll be proactively buying.

This The article is also known as Take. Opinions expressed are entirely the authThe following are some examples of how to use's and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

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John Lesley/ author of the article

John Lesley is an experienced trader specializing in technical analysis and forecasting of the cryptocurrency market. He has over 10 years of experience with a wide range of markets and assets - currencies, indices and commodities.John is the author of popular topics on major forums with millions of views and works as both an analyst and a professional trader for both clients and himself.

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