Identifying Bitcoin Price Bottom Might Not Be Significant
Bitcoin has had a rough week as it lost around 12% during this time. It’s amid these declines that investors start questioning whether the price has reached its bottom. However, it might not be important to ask this question right now.
1/ HOW TO IDENTIFY THE BITCOIN BOTTOM: A Thread pic.twitter.com/9KqI7ygqst
— The Crypto Fam (@TheCryptoFam) June 22, 2018
As evident from the Tweets, buying Bitcoin at the absolute bottom is not astronomically more profitable than buying close to it because of the magnitude of price movements in cryptocurrencies are substantial. While buying at the absolute bottom will surely guarantee more gains, the difference, given those astronomical price spikes, shouldn’t matter that much.
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.
However, as it makes good headlines and new bites, 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 that he thinks the price has reached its low.
Fundstart’s Head of Research, Tom Lee voiced his opinion on bitcoin’s trends by saying that he strongly trusts that its downward trends will now remain in the past and still stands by his belief that the giant will easily reach USD$25,000.
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.”