- November 16, 2018
- Posted by: Jay
- Category: BitCoin, Cryptocurrency
Did Black Friday start early for Bitcoin? For the first time in 2018 Bitcoin dropped below the $6,000 mark. Most are wondering if it’s time to buy bitcoin. In fact, depending on the exchange you watch, it briefly dipped to $5,200. Even with the total market cap dropping below $100 billion, it is still the top coin as all the other alt coins took double digit dips. Bitcoin is the king of cryptocurrency.
There are plenty of theories as to why the dip, from the Bitcoin Cash hard fork, to the CBOE future contracts expiring, to flat out manipulation while Binance is under maintenance. Then there are theories speaking to whether this is the last capitulation before the next bull run. Will Bitcoin push down to the $4,000 level or $2,000 level? Who knows, but if history is a guide, it’s time to buy.
A recent article in Market Watch cited that $5,500 could prove to be a real bargain. Twitter user @OddStats is cited as presenting a chart of bitcoin showing al the significant two-day selloffs. Those dips were always significantly rewarded with significant double digit gains. And Bitfinex is reporting that record numbers of investors are buying the dip with the number of long contracts on the exchange climbing to over 27 thousand.
Cryptonews in an interview with Jehan Chu, founder of Kinetic Capital, is calling for a Bitcoin buy. His firm in the 2018 bear market has managed year to date returns of 77%. He may know what he is talking about. Given the long term expectation of Bitcoin, $5,500 looks like a very cheap price.
Considering that Bitcoin has grinded sideways for months in the $6,400 range, take out the emotion and recognize that when there is blood in the streets, it is time to buy Bitcoin. This is not financial advice. Happy Investing.