Disclaimer: The information in this blog represents the opinions of its author and is for educational purposes only. It is not intended as investment advice. Cryptocurrency markets are extremely risky so you should only invest money you are willing to lose.
Are You One Of Those People?
Do you tell yourself, your barber, your Uber driver, your Fedex guy, your pedicurist, and anybody else who will listen that you're just waiting for a dip in the bitcoin market to buy into the long-term uptrend?
Feel pretty smart - don'tcha? Smarter than all those greedy suckers who are manically buying at ridiculously high prices only to get chopped up in the volatility. You're not one of them - you're a smooth operator - calmly waiting out the hype to slide into a nice high-probability, low-risk price swing. Then what happens?
Get Your Mojo Back
We totally feel ya. We get it. We're here to help you get your mojo back.
When everybody and their uncle and their grandma and their second cousin and their mailman and their kid's soccer coach is trash-talking and dissing bitcoin, bla-bla-ing about the "bubble" and impending "crash"; when every ticker and news crawl on every giant-screen HDTV is flashing bitcoin's price plunge in red; when every annoying morning show host can't shut up with the "told-ya"s - it can get pretty scary.
There's A Name For It ...
It would be impossible to overstate the psychological impact of the wild price swings superimposed on the cacophonous din of bubble-boys and deputy-downers of doom who just can't seem to shut up. There's a name for this phenomenon - it's called bearish sentiment. It's been extensively scientifically studied and guess what? It works in the opposite direction than you'd imagine.
That's right - It turns out that the academic studies prove that when bearish sentiment is high, that's a positive sign for a market. Statistical analysis shows that there's a lot more room on the upside - that it's likely to go higher.
Trust The Math
Bitcoin started the year under $1,000. On the morning of Dec. 17th it briefly touched $20,000.
There's no question that bitcoin is in a long-term uptrend. But with bitcoin trading below $16,000, you're thinking - "am I late to the party? is it over?".
Bitcoin's Story In A Single Chart
Let's look at the charts and do the math. Don't worry, we did the math for you. In fact we did a meticulous mathematical technical analysis of the last 21 bitcoin price swings, the ups and the downs, the "pops" - when prices shot up, and the "drops" - like this one right now, in which the price has plunged 29% in 4 days.
Every Drop Is Followed By a Bigger Pop
Drops are labelled on the chart in red, and pops in green. The first thing you'll probably notice is that every drop is followed by an even bigger pop.
SInce we're in the midst of a plummeting market right now, let's focus on the biggest drops - those in which the market fell more than 30%. Including the current one, there have been a total of 5 of them since June:
Average 86% Comeback
That's an average 86% comeback following market plunges like the one we're in right now. This is the time to get your mojo back and start buying.
Impossible To Time
As easy as it is to say "bubble", it's notoriously difficult, if not impossible, to precisely time a market's top. It's one thing to say that it will eventually reach a top, which of course it inevitably will. Does that mean it will stabilize? retrace? retrace and then stabilize? retrace and then advance? crash? crash and come back? Nobody knows. Only one thing is certain - calling that market top is next-to-impossible.
Trust The Math
With bearish sentiment running ridiculously high, and every so-called "expert" dissing bitcoin, with the long-term chart trend still powerfully pointing up, and with the mathematics of an average 86% pop after 30% drops on our side, we're trusting the math and calling this market pullback a perfect buying opportunity.