Categories: Bitcoin Business

Identifying Bitcoin Price Bottom May Not Be That Important

Click here to view original web page at bitcoinist.com

Bitcoin (BTC) $6483.05 -0.59% has had a rough 2018, losing upwards of 65 percent of its all-time high reached in January. The last few weeks haven’t been particularly fun either – the world’s first and foremost cryptocurrency lost around 12 percent in the last week. It’s amid those declines that investors start questioning whether the price has reached its bottom. But is it that important?

Bitcoin Bottom Not So Critical

Whether Bitcoin$6483.05 -0.59% has reached its absolute bottom or it’s somewhere close to it doesn’t matter that much according to the CryptoFam community on Twitter.

As evident from the chart below, buying Bitcoin at the absolute bottom is not astronomically more profitable than buying close to it.

The reason is fairly simple – the magnitude of price movements in cryptocurrencies are substantial. Historically, Bitcoin has had quite a few massive corrections and subsequent recoveries. One of the most notable declines took place between August and November 2011 when it lost roughly around 94 percent, dropping from $32 to $2. Yet, the world’s largest cryptocurrency is up with over 42,000 percent in the last seven years.

While buying at the absolute bottom will surely guarantee more gains, the difference, given those astronomical price spikes, shouldn’t matter that much.

Calling it Nevertheless

Popular Bitcoin proponents and traders have attempted to identify the bottom within the last month. Barry Silbert, founder & CEO at Digital Currency Group and early Bitcoin investor, said on July 17th that he thinks the price has reached its low.

Investment expert Mike Novogratz also shared his two cents on the matter:

I think we’ve pretty much bottomed. I’m not positive we bottomed but it feels like we have. […] I do think we are building a nice bottom for the next move up.

It’s noteworthy that both of those statements were made at times when Bitcoin’s price was higher than what it is today.

Do you think Bitcoin has bottomed? Don’t hesitate to let us know in the comments below!

Images courtesy of Twitter/@TheCryptoFam, Shutterstock.

cinerama

Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Share
Published by
cinerama

Recent Posts

The Entire Bitcoin Dynamic is Changed by the Lightning Network, Says Samson Mow

Samson Mow, BTCC Exchange’s Founder and Magical Crypto Friends and Blockstream’s present CSO, recently shared his views on Bitcoin’s status… Read More

2 hours ago

Bitcoin History Part 15: Silk Road Is Born

Silk Road launched in February 2011 as the darknet’s first bitcoin-based marketplace. Within four months, it would be the darknet’s… Read More

2 hours ago

Sunday Digest: Bitcoin Price, Pantomime Season, More Craig Wright Lies

Share Tweet Send Share This week, US President, Donald J Trump, decided that he would like to buy Greenland, thereby… Read More

2 hours ago

Bitcoin Twitter Is Daydreaming About a Hong Kong Bank Run

Crypto-fever dreamers cheered as Hong Kong protesters suggested organizing a bank run, but apparently rioters didn't flock to bitcoin. |… Read More

2 hours ago

World Bank issues second tranche of Ethereum blockchain kangaroo bond

'Kangaroo bond' is the name given to a foreign bond, issued in the Australian market and denominated in Australian dollars.… Read More

2 hours ago

What the Theft of a BBC Reporter’s $30,000 in Ethereum Shows About Cryptocurrency

Last week, BBC contributor Monty Mumford lost $30,000 of Ethereum . This came after a logical thought process: invest in… Read More

2 hours ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More