Bitcoin has been declining an average of $ 110 per day but has increased by 49% since 2019
The past few weeks have been a difficult time for Bitcoin. On average, the leading cryptocurrency has dropped by around $ 110 per day since October 25.
Where will Bitcoin go by 2020? Well, if you look at weekly trends, it doesn’t look good, but a reversal is likely to occur.
String of losses
By the time retailer Anton Kreil wrote, BTC has dropped significantly since the end of October. He calculated that Bitcoin has lost about $ 110 per day since October 25.
If this linear trend is applied, it means Bitcoin will reach $ 0 on January 25.
Since Oct 25th Bitcoin has dropped at an average rate of $110.43 per day. At the same average $ pace it will be $0 on the afternoon of January 25th (61.5 days).
— AntonKreil (@AntonKreil) November 25, 2019
Of course, that will not happen. BTC cannot be zero and charts do not work linearly.
However, it turns out that Satoshi’s child is very weak while looking at the weekly figures. Assets have continued to decline slowly for weeks now, gradually weakening their prices.
However, there seems to be some hope for the bulls and HODLers.
Bitcoin can break a string of losses
Bitcoin has unexpectedly increased significantly today, possibly breaking the discount chain it experienced. According to market data, assets are currently up more than 4%, but that doesn’t tell the whole story. The leading cryptocurrency has been trading at just $ 6,600 earlier today and has since exploded to the current price of $ 7153. That’s a 10% increase in less than 12 hours.
So late October and November are definitely hard times for BTC. However, today’s reversal may be an indication that the tide is moving. An analyst firmly believes that the reversal of Bitcoin has begun. Keep in mind that Bitcoin still has to maintain strong bullish divergences and close down for this to be confirmed.
Hod Bitcoin will not lose
Although Bitcoin has lost about $ 110 per day since October 25, if you buy Bitcoin on average every week, you will have a profit of nearly 50% for an impressive year of statistics. This proves that it’s smart to allocate your purchases.
Does the average of your purchases instead of ‘all in’ make a better strategy?
With large purchases, it relates to the timing of the market. However, calculating the average of your Bitcoin purchases over a longer period of time has yielded significant returns for investors this year.
Analyst Anthony Pompliano wrote on Twitter that if you were to buy $ 10 Bitcoin per week in 2019, you would currently be up 49%.
0/ If you bought $10 of Bitcoin each week for the last year, you would be up 49% currently. pic.twitter.com/EJAzSlmdj6
— Pomp ? (@APompliano) November 25, 2019
Although the situation is much worse in 2018, the average cost strategy will also work throughout the peak of the bear market. If you have purchased BTC worth $ 10 per week since the beginning of 2018, currently you will increase by 27%.
However, it will be better to return to 2017. If you have spent $ 10 weekly on BTC since the beginning of 2017, you will increase by 156% as of now.
2/ If you bought $10 of Bitcoin each week for the last three years, you would be up 156% currently. pic.twitter.com/sBuxZRTWTr
— Pomp ? (@APompliano) November 25, 2019
These are certainly impressive numbers and speak of the power of Bitcoin as a long-term investment. Given the recent market chaos and the apparent panic in the market, it is important to uphold long-term views. Your average cost of buying works even when the bear market is at its worst in 2018.
Therefore, with all this, we should not be afraid of extreme fluctuations or rushing to sell our Bitcoin. The long-term trend is towards stable profits and with halving in May 2020, it is likely that next year will be very special.
Disclaimer: This is not trading advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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