We’ve all felt it.
“If only you invested early, you’d made much more money today!”
Some would say times were uncertain. The economy wasn’t that good. The news was pointing in the opposite direction.
The question is, what would you have done if you knew this scenario would happen?
Today, February 7th, Bitcoin is worth $9,880.
People aren’t losing money because of bad timing. They lose because they don’t engage. In the long run, staying out of the market costs more money than having bad luck.
Whether there’s a crash upcoming or a boom, smart investors always find a way to make profits. Here, we’ll analyze what got Bitcoin to this price, what will likely happen in the future, and what to do in each case.
How Bitcoin Is Changing In 2020
After long inactivity, Bitcoin started to surge in early January. It hasn’t fallen since then, and the positive trend doesn’t seem to change anytime soon.
As Bitcoin becomes popular, more people start investing for the first time. Especially in February.
But beginner investors use to fall into a psychological trap. Once the market creates a trend, they assume it will go as it has been recently.
As a result, they invest more when the stock is going up, which is ironic. The best time to buy is at the lowest mark.
That doesn’t seem to be a problem this year. The market floor of Bitcoin has slowly progressed from $3,500 to $6,500. We still experience spikes from time to time, like in early 2019, but the value doesn’t bounce back as fast as it used to do.
Based on this pattern, the most expected case is a price increase. It may fluctuate around $10,000. But once it crosses this ceiling, it can quickly surge beyond $15,000 before the second half of 2020.
How Investors Should Anticipate To The Market
As a first measure, we should keep the capital diversified. Never buy or sell all your bitcoin. Keep investing in Bitcoin and have a cash-reserve to buy, no matter what the market does.
Furthermore, try finding a backup plan. You can sell bitcoin shirts for a certain price, even if Bitcoin goes to zero. Remember, there are various ways to get some money from any market. And various ways to create a backup plan. Some things are fragile, other antifragile.
If you bought it at least six months ago, you’re in luck. While many people are buying Bitcoin, today is the best moment to sell.
You can buy Bitcoin today too, but the outcome is much harder to predict. Here’s what to expect based on what we’ve seen in the last decade.
It appears the current ceiling is $10K, which never changed. The floor, however, has constantly been upping. As the minimal value goes up, so will the maximum.
Right now, both extremes are too close to each other. Naturally, this ceiling will change. In particular, experts expect Bitcoin to be worth $15,000 before July, and over $20,000 before 2021.
How To Back Up Any Prediction
Of course, others may not agree with this trend. Nobody can predict the markets always, which is why you should make decisions independently.
Here’s what you can do to verify this trend or find a more accurate one.
Study financial patterns. Look at the Bitcoin price history to find what reaction is likely to repeat.
Research financial news with caution. Sadly, 99% of the headlines are noise. Publishers design them to encourage you to buy Bitcoin and be an active investor. You have a better success chance if you stay in the game passively, ignoring most of them.
Take expert advice. If there’s someone who should listen, take the legendary investors. W. Buffet, J.Bogle, C.Icahn, R.Dalio, B.Graham, or C.Munger. You’ll learn far more from smart investors who’ve seen it all.