Why You Shouldn't Panic about the Bitcoin Price!
Over the last few weeks, the bitcoin price has seen multiple peaks and valleys. At one point, the king of cryptocurrencies was on the verge of taking out the $20,000 level. Now, it's barely above $13,000, as rumors circulate that South Korea could crack down harshly on bitcoin and altcoins.
Granted, the fundamentals right now aren't that favorable to the "blockchain markets." Nevertheless, I believe that there's no reason to panic yet over the declining bitcoin price. We have seen this pattern materialize time and again. While no guarantee exists that history will repeat itself, the probabilities are definitely tilted towards the bulls.
In our assessment of the bitcoin price and related bitcoin news, we have to consider volume: namely, that we're currently enjoying unprecedented participation. This is volume that's not just about sentiment. Rather, actual people are plunking down real currencies for blockchain assets. Even comparing this month to earlier this year, the differentials are stunning.
Furthermore, the bitcoin price rocketed to record levels in record time (from mid-November to mid-December). Such intense bullishness has to consolidate if there's any hope of resuming the rally. Thus, the correction that we see in bitcoin and other altcoins is a positive development.
Just be patient, and let the wave come to you!
The people that panic are mainly those that haven't been invested for very long.
I first invested significantly about 3 months ago, and within a fortnight it was down a fair bit. It depressed me, stressed me out, and pretty much consumed every minute of my day waiting for it to climb and wondering whether I'd made a mistake.
Obviously it worked out, and since then there's probably been 2-3 other downturns. Nowadays I barely pay it attention when it's down, unless I have some spare money to throw in at cheap prices.
I did get spooked once though - when the whole Bitcoin cash thing happened in November, I felt something wasn't right. I transferred all of my Bitcoin into Vertcoin.
At times it's looked like a terrible decision, and at times a masterstroke. It's funny how it can mess with your emotions. Both coins have had significant growth, but I bought in at 65k satoshi and we're not at that mark, so right now my investment would have grown larger had I have kept it all in BTC.
I'm waiting for it to get up above 70-75k and then I'll likely transfer some back across