Trading Column `The Writing on the Wall´– Futures are Almost here, Is This the Right Time to Buy?

This post is the second in a trading tips series called ’The Writing On The Wall’, in which our game theory guide Eric Wall tries to anticipate market signals. This week’s focus is on timing your bitcoin investment and when it might be the best time to buy.

Is it a Good Time to Buy Bitcoin?
The price of bitcoin has risen +938% this year so far. What’s new for 2017 are the signs of institutional capital finally finding its way into the cryptocurrency market through various means (1,2), but we’re nevertheless also seeing an unprecedented influx of retail investors, with Coinbase adding roughly 50,000 users per day as of late. Many new speculators have been watching bitcoin from the sidelines for some time and are now warming up to the idea of finally taking the leap. But, given the tenfold increase bitcoin has already enjoyed this year, it is of no shock that the most echoed concern from these users is whether or not it really is a good time to buy right now.

In this article, I will do an analysis of the current market situation in bitcoin in order to try to answer that question.

First, we need to establish some time-frames on which the question is supposed to be evaluated. Essentially, what the question “Is it a good time to buy?” really is asking is whether or not there’s a good chance that there will be an even better buying opportunity presenting itself in the future. As such, I will analyze the prospect of that happening on three time-frames of different lengths.