RIP Bitcoin mining, but is now a good time to buy BTC?
Bitcoin, along with the entire cryptocurrency market, has had one of its worst months in history. Ironically, this all happened right after the Bitcoin 10-year anniversary date. As of November 27, the number one cryptocurrency is trading at around $3,730. Compared to the near $20K of one year ago, it seems like Bitcoin is on its last legs.
Having said that, Bitcoin has had many mountains and valleys over the last decade, and this one is not as unusual as you might think. Bitcoin might be one of the most volatile and unpredictable currencies of all time, but it also yields results like no other. Bitcoin was first added to the forex brokers’ list in 2014. If you’d bought $1000 worth of Bitcoin back then, you’d have today over $30,000. Even at today’s low-low prices.
If you take a long-term view of any of the assets in the world, you’ll see plenty of ups and downs. It’s what keeps the markets alive. The Bitcoin chart is showing the price as a deep trench these days, which brings to mind the old trading saying “buy low—sell high!” Is Bitcoin a buyers market right now?
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The Bitcoin price killed Bitcoin mining
Bitcoin mining has grown in epic proportions since it first began in 2009. It is said that a new block was built every ten minutes over the last two years. This growth has created a monster that taxes even the most powerful computers. Today, sadly, mining is no longer an option and anyone interested to board the BTC train must do so through a third party such as a broker.
Simply put, the popularity of Bitcoin attracted mining, mining increase prices, increased prices fueled the popularity, the popularity made mining impossible. The back end of this cycle is a continuing downtrend.
Today’s price translates into a 42% loss since the beginning of the month and an 80% loss since the peak of this year. Many experts argue that a so-called “hash war” that took place following a split of the Bitcoin Cash network earlier in November may have been the most recent trigger. Other possible explanations could be a crackdown by national regulators around the world, and that a much-discussed Bitcoin-based exchange traded fund (ETF) has yet to appear.
The trader’s silver lining
There is another, less pessimistic way to see the current situation: Many crypto observers consider this correction a much-needed one, as it helps the market to stabilize, mature, and become healthier on many levels.
With Bitcoin now trading at the lowest prices since September 2017, this may, therefore, be the right time to enter the market for investors looking to get the most bitcoin for their dollars. According to the very outspoken Bitcoin bulls, we will never get such a good buying opportunity again.
On sale: BTC
An interesting thing to note about the Bitcoin market right now is that it has been hit so hard that many don’t believe it can go any lower. Among these people is a fairly large group of die-hard Bitcoin proponents who will never sell… no matter what! And when these are the only people left in the market, there is nowhere for Bitcoin to go but up.
It’s also important to realize that we may not have hit the bottom quite yet. Although Bitcoin will likely gain traction again and probably touch new highs in the future, the technical analysis picture today looks grim, with a current downtrend on the chart… no matter how you look at it.
According to a recent Bloomberg report, technical analysis suggests that prices may fall all the way to the $1,500 level before a recovery sets in. Other experts, however, point to $3,000 as the most likely floor, also citing technical chart levels.
While nobody knows if BTC will reach either of those figures, it seems obvious that lower prices represent an even greater buying opportunity for investors who can stomach some volatility in the months to come. To follow the BTC price closely and be in a position to buy or sell at a moments notice, simply open an account with Exness, get free access to the MT4 trading platform, and be ready for a price spike.
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