Earlier today I was contacted by a friend, who bought Bitcoin some time ago. Pleased with the latest price rises, they wanted my advice on how to send their Bitcoin back to Coinbase, to sell some so they could buy it back when the price goes lower.
I cover this in my book.
Chapter five on Acquisition explains how and why this ‘pattern’ occurs and the dynamics behind it.
In the image below you can see what happened the last time Bitcoin’s all-time high was reached in January 2017. Indicated by the blue line.
You can see that the price was quite ‘choppy’ here at the end of the cycle. However, the breach of the previous high saw a breakout of the price to new all-time high’s. This is known as a ‘bull-run’ in trading circles.
In 2017 Bitcoin’s ‘bull-run’ of the price, took it all the way from $1155 to a staggering $19,666!
Eventually, the price pulled back, but as you can see from the chart below, even at it’s lowest, the price never again went below the previous all-time high. (Indicated by the same blue line)
So can you see why I advised my friend that this would be a bad time to sell? If you don’t own Bitcoin already, now and the next couple of weeks could be an excellent time to buy!
Until next time enthusiasts!