The recent time has proved to be disappointing for the crypto traders. However the reason behind this downfall is not clear as the prices of cryptocurrencies dropped significantly. Currently their are two views of conclusion in the crypto market arising in the mind of crypto traders that whether to hold cryptocurrencies for future any further or to sell them right away to avoid any further loses.
Seeing the current market downfall, one question arises most often, to take a stand for bitcoin. Is it a risk to buy or opportunity to get in on a reward in future ?
What’s Are The Market Trend’s
In this piece, we are going to take a more liberal stand where we consider bitcoin as a potential risk that will go lower than its current $6K range and a potential reward opportunity that will break and go higher than $6K. The first thing we need to look at is the fact that bitcoin recently dropped to an all-time year low of $5,800, bitcoins latest resistance level to be tested.
So, arguably, it’s almost impossible for the cryptocurrency to go below that mark. However, it is not impossible and it could still go below that resistance level. According to bearers, the price will go as far as $3,000 or $4,000 and granted we will use this number, cause by the time the market hits that low, you will definitely cash out and call it a day.
On the other hand, the bullish predict an all-time high of over and above $20,000 but for practicality we are going to use the historically proven number, $19,000.
Investing – Gain Or Loss
So, if you buy bitcoin in the range of $6,300 to $6,400 and it goes down by nearly half, of course you won’t wait for it to go to zero, you will cut your losses and sell off at around $4,000. At this point you will accept that you have lost and the bearish were right all this time.
It won’t be pretty, but will it be that bad? Well, some people have lost from $10,000-$18000 to an all low $6,000, but people are different, not everyone is willing to lose anything close to half of their investment. In conclusion, if you invest in bitcoin right now and the market is bearish you lose about $2,000 of your $6,000 financial investment when you finally decide to sell off at $4,000.
What about if the market is bullish? In this case, we know realistically bitcoin could go to $10,000 before the end of the year. If it does, you will make something close to $4,000 in a couple of weeks or months. This is not all, bitcoin could still go all the way, all the way to $15,000 or its all high of $19,000, in this case you will make nearly three times of what you invested.
Bitcoin going all the way might not happen this year but it’s almost certain that it will still hit well over $10,000. It’s quite easily possible that with a single event like the SEC approving bitcoin ETF’s, or backing of major financial institution, bitcoin will rally all the way to $10,000 to $19,000.
Hold Or Trade CryptoCurrencies Now
So it is clear that taking a realistic stand and buying bitcoin right now when it sits in the $6K range proves to be more rewarding than risky. The $5,800 resistance level has been tested and judging from how fast the number bounced back to $6,300, its nearly impossible for the coin to go below that.
From a liberal point the reward is higher than the risk and this current price is a buying opportunity. As per a famous books quote ‘ Market Wizards,’ “It’s better to have the wrong idea and good timing than the right idea and wrong timing.”