Historical price assets are a great way of predicting the past. While this may sound weird, it’s actually not. Price charts are like a kind of map that you can use to guide your future based on what has happened. They offer an important context for understanding markets.
Every market has trends and looking to the past is certainly a way of understanding the trends that might appear in the future, which can give you hints on how to invest. Currently, Bitcoin is on a bear market and it is trending very low. What will be the future of Bitcoin?
The Bubble Has Burst
It is clear that Bitcoin has had its bubble. While it would be a stretch to call all the related blockchain-industry a huge bubble, it is certain that the Bitcoin market has had its own bubble just like the dot com market before it.
The story will repeat. Just like after the dot com crash, if you are able to buy Bitcoin now, there is a good chance that you will be able to get excellent returns later. However, some analysts believe that Bitcoin did not reach rock bottom just yet.
According to them, there is still some space for the tokens to get even lower. When the headlines are that “Bitcoin is dead” it will be the perfect time to buy tokens.
When Will Bitcoin Be Really “Dead”
If you see logarithmic charts of Bitcoin, you can see that the crypto has been growing and behaving logarithmically because of its viral growth. Basically, if you look at it this way, you will see the patterns easily.
Bitcoin constantly explodes and create “bubbles” when its price is very high and then it goes “rock bottom”, but the new rock bottom is always higher than before. If you just keep storing your tokens, you can pass cycles and make profits, selling only it is hitting the highest price so far.
According to the logarithm map, there is a certain non-linearity on how the price grows with spikes that go up and down that can make the price keep increasing.
This makes for an irresistible trade because if you invest when Bitcoin is at its lowest, you will be able to have a chance of 100% loss versus a good chance of more than 1000% gain. Invest $500 USD and you can make up to $5,000 USD when the next cycle reach its peak.
This way, you can invest now or you can wait some more time and wait until the price is even lower to buy tokens and get even more profit.