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Should I buy Bitcoin or is it too late?

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In the investment world, people are always looking for an opportunity or moment to enter a certain market. There are many factors that are analyzed when making a decision, whether to sell or buy. That is why we decided to analyze whether buying Bitcoin right now is a good idea, considering its price.

Price analysis to determine whether to buy Bitcoin

What is happening right now? Is it too late to buy Bitcoin?

We are almost at the end of March 2020, at a time when everyone is facing a common threat: Coronavirus. This virus has not discriminated in region, profession or social level. You have simply traveled the world as you see fit.

Therefore, it has had notable consequences in the financial markets, with collateral effects in the cryptocurrency market to a greater or lesser extent. However, this is why we must analyze whether we should buy Bitcoin or not.

Well, as of this writing, Bitcoin is valued at $ 6,732.60. This represents an increase of 4.43% over the price of 24 hours ago.

Bitcoin price weekly chart. At this time, it is viable for many to buy Bitcoin, since they expect it to continue increasing in the medium term. Source: CoinDesk.
Bitcoin price weekly chart. At this time, it is viable for many to buy Bitcoin, since they expect it to continue increasing in the medium term. Source: CoinDesk.

Also, for now, the global economy is in a state of total shock. This helped panic hit even crypto markets on March 12.

During the panic, Bitcoin was oversold. In just 24 hours, $ 93 billion was removed from the crypto markets, resulting in a 48% drop in the price of BTC.

Therefore, some medium and long-term investors have decided to buy BTC, expecting a price increase due to several factors that we summarize below.

Factors that can promote price increases

If we take into account the opinion of Tim Draper, a well-known cryptocurrency expert, we would consider this to be a good time to buy Bitcoin. The reason is that, according to Draper, with Bitcoin’s Halving slated for May, the price of the token could hit a record high of $ 250,000 by 2022. Just like Draper, there are many who maintain their faith in the bullish consequences of Bitcoin’s Halving.

On the other hand, Richard Ells, the CEO of Electroneum, stated that in the short term: “sit would be foolish to expect anything other than severe volatility in the cryptocurrency market” However, once the storm has passed, the price is expected to start rising again. Therefore, if we follow this idea, we would say that buying Bitcoin right now seems to be a good option.

Opinions against buying Bitcoin right now

Many are optimistic about Bitcoin’s Halving, but not everyone is convinced.

Nikolai Udianskyi, CEO of BTCU and Co-Founder of Coinsbit Exchange says: “Many people think that after Halving, the price of BTC will increase. But all of them do not take into account one fact: the previous two caused a stir around Bitcoin. During that time, the market was full of enthusiasts who were ready to invest money and take risks.

Udianskyi adds: “Now the situation has changed a lot. There is no longer a line of people who want to buy Bitcoin and other cryptocurrencies” For him, Bitcoin Halving is not a key argument on the issue of BTC price growth, therefore future earnings are not entirely guaranteed.

conclusion

From a historical point of view, BTC prices have increased due to supply and demand during Halving. This leads to two situations: supply is high and demand is low, leading to a decrease in the price of the asset / product. Therefore, we would say that it is an excellent idea to buy Bitcoin at the moment, since it is relatively low and with bullish prospects.

For example, those who decided to buy Bitcoin when others were panicking have already made a profit. The price has increased more than 30% since it fell on March 12 until today.

But, nothing is certain in the crypto market, and less in a Coronavirus context. Despite what is expected or not from the Bitcoin Halving, you have to keep an eye on the flow of buying and selling Bitcoin on different exchanges. Also, you need to make sure to monitor the activities of the crypto whales, who are the crypto world’s biggest players.

On the other hand, Bitcoin and cryptocurrency investors are on the lookout for any signs of increased volatility. Volatility, for many, is a good sign in the cryptocurrency world.

According to Philip Gradwell: “Large increases in currency inflows have proven to be a good indicator of increased volatility.” Gradwell is a New York-based chief Bitcoin, cryptocurrency and Blockchain research economist.

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