The month of November has thus far been a disappointment. This has seen many lose optimism in Bitcoin ending the year strong.
During the year, there were positive flashes that saw the promise of Bitcoin reaching an all-time high before the end of the year. While Bitcoin is the one asset that can never be written off in doing something spectacular, the asset is on track to end the year on a low. With speculators beginning to reconsider their positions in the market, a report by Binance research has backed the best and most effective Bitcoin strategy to be holding.
The researchers explain that Bitcoin rallies several days in a year and these days are hard to predict. Because of this, the best way to utilize them is buying and holding when prices are stale and capitalizing during the rallies. But this only works for long term investors with speculators and short term holders having to take high risks when choosing to buy and sell.
The holding strategy, however, has its downside especially for the impatient. While many who buy during lows rarely record losses, buying during highs, means you’re more likely to burn your investment. For example, those who bought Bitcoin when it was in 2019’s year high of over $13,000 are yet to see it return to those numbers. But, those who bought at year lows of $4,000 have seen returns of more than double.
This report comes as November fails to impress for all speculators and HODLers. An earlier rally that saw Bitcoin climb above $9,500 was tipped to be the mark of changing trends and a positive month. But Bitcoin failed to find support above this crucial position and a correction followed, seeing Bitcoin fall below $9,000.
At the time of press, Bitcoin is trading for $8,457 as it continues on a steady decline. More losses are predicted over the next few days unless Bitcoin can find momentum and climb back above $9,000. It also remains crucial that it finds support above $8,500 to avoid a decline to recent lows of $7,400.