Is there a right time to buy Bitcoin? if there is, then what time is it? I am sure many crypto newbies and investors have asked these questions over a thousand times. There may be an answer to this question or maybe not, and this boils down to the only certainty in the crypto market which is uncertainty.
While there is a divided opinion on this question, there is a slight advantage for the “notion” that there isn’t a right time to buy Bitcoin, that’s generally speaking as the wild volatility factor of the crypto market makes it almost impossible. Some even attribute many profits in the crypto world to luck, and many investors tend to meet the bullish trends of coins they happen to have purchased.
Even though on the mere surface, there seems to be no answer to the question above, the technicalities of the crypto market prove otherwise. Charts, history, Technical Analysis, trading indicators, performances, seasons, developments, and news are all contributing factors that can create the right time to purchase Bitcoin.
There are many perceived times to buy Bitcoin with results backing them, therefore, proving that whatever time that maybe might actually work for investors and newbies. Many people hold the view that the right time to buy Bitcoin is when its price is on a downtrend. Regardless of the fact that you might lose some chunk of your money, it’s price will soon pick itself up, embark on a bullish trend and repay all those who had faith in it. Some experts also believe that the right time to buy Bitcoin is when it is on a bull run, doubling or even tripling profits in hours. Whiles all those times might be true, there have been many circumstances in which Bitcoin price defied the history and calculations.
In a report published by two economics experts from Yale University concerning the right time to buy Bitcoin, they stated that the price of bitcoin is best foreseen by its past patterns and behavior. The report on the seven-year research published in the National Bureau of Economic Research stated that Bitcoin and other cryptocurrencies are different from stocks and other currencies, regarding the elements that affect their market progress.
The report further stated that cryptocurrency price could be predicted by factors which are specific to cryptocurrency markets. Their developed method of determining the right time to buy Bitcoin only come into play if the value of the digital coin increase by over 20% in the last 7 days. This was because when Bitcoin performs well, it tends to be for the short term.
Bitcoin climbed more than 20% within 24 hours on March 19, 2020, and ended the following seven days trading at $6,671. Bitcoin, however, lost over 3% in value the next seven days and was trading at $6,221 on April 1, 2020. The fall in the price of Bitcoin wasn’t anything new but the digital coin once again defied the whole narrative and research provided by Economic experts.
It is almost impossible to predict the future of Bitcoin as well as the right time to purchase the cryptocurrency. Its highly volatile nature makes it unpredictable, therefore, making its market a very confusing one. Buying Bitcoin all boils down to the investor. Long-term investors could possibly study the coin’s history and performance to know when and how to invest whiles short term investors could also take a chance and embrace whatever outcome it is that the market might provide.
The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.