If you have been keeping tabs on Bitcoin [BTC] and the crypto market at large for the last few months, chances are you are feeling a bit bitter. Unless you happen to be one of the Bitcoin critics and doom-mongers, in which case, you may be gleaming with joy.
It is difficult, especially for those new to crypto investing to avoid panicking as cryptocurrencies continue crashing. However, there are multiple reasons why you should keep calm and trust Bitcoin.
For starters, Bitcoin’s historic performance is littered with massive upticks and sharp price drops. The 2017 bull run and 2018 crash are perfect examples of the effects of crypto’s volatile performance.
The king coin’s historic performance also reflects the premise that crypto is a long game. Disappointment often awaits those looking for short-term gains. After the 2018 crash, Bitcoin took a while to recover and eventually crossed above its 2017 high in 2020. It might take more than a year for Bitcoin to rally past its current all-time high (ATH) if history is bound to repeat itself.
It is nearly impossible to accurately time the bottom. However, there are always signs to look for when the bottom is near. Bitcoin bottoms are often characterized by increased FUD and statements, such as ‘Bitcoin is dead.’ The latter has already started popping up.
Bitcoin’s pricing model is currently flashing signs that the current bear market is approaching a bottom. Its average price of $20,281 traded below its realized price of 22,441 on 29 June. Its MVRV ratio also dropped to 0.90 on 28 June.
The alignment of these observations in the Bitcoin pricing model has historically been followed by a significant rally not long after. Large Bitcoin acquisitions often happen nearRead more on ambcrypto.com