Bitcoin and crypto trading guru Tone Vays has said that the flagship cryptocurrency may have reached its price floor. If so, he advocates for investors to buy now for long-term holding.
Vays’ Tweets Reflect Optimism
The notion of buying on dips as a tried-and-true investment strategy dates back generations. For Bitcoin and other cryptocurrencies in general, picking up promising platforms during lows can be both extremely profitable, yet it is also quite challenging given the volatility of the market.
Vays clearly thinks that now is the time for investors to start accumulating. He has tweeted:
For those that "Bought the Dip" under $4k lock it down as #HODL. For those that missed it, I am comfortable buying it here, but also setting $BTC Limit orders at $4,550, $3,550 & my ALL IN is at $2,750-2,950!
Can't see #Bitcoin going lower for those waiting on sub $2k
— Tone Vays – TheFinancialSummit.com (@ToneVays) March 13, 2020
Since the price collapse on Thursday, there has been no shortage of speculation over the market’s next steps. Unlike previous crashes, this one has deeper ties to global events. Many crypto advocates believe that the price could go much lower. Even Vays acknowledges such but claims that enough data exists to feel optimistic that the worst is over.
Most analysts agree that recovery would come very quickly, as commodities tend to bounce back rapidly after major price collapses. Within the crypto space, this phenomenon is all-too-common. Thus, extreme volatility over the next few days should be expected.
Monday morning will be interesting, as the behavior of global financial markets will play a big role in determining the action of crypto prices. Should markets recover, cryptocurrencies could also start moving back up.
Bitcoin Crash Proves Wisdom Of Prudent Investing
This crash has been a nightmare for speculators betting on upward price movement. Specifically, those that have taken out long trades on margin have experienced major losses. The extent to which the crash is related to market manipulation cannot be known, but rumors of deliberate sell-offs to cause major dips are spreading.
For investors that have instead chosen to simply buy and hold, this crash may be frustrating, but they still hold their crypto. They can only experience a true loss if they choose to sell. In fact, Bitcoin and most other cryptocurrencies are still up significantly from a year ago. As many analysts have pointed out, the current market state could represent a short window where promising platforms can be accumulated at amazing prices.
Simply put, once again a simple strategy of making consistent, timed purchases and holding coins in private wallets is proving to be the wisest. Regardless of short-term price trends, the crypto market will recover. Blockchain development and adoption are stronger than ever, as is interest from institutional investors.
Has Bitcoin bottomed? Tell us what you think in the comments below!
Images via Shutterstock, Twitter: @ToneVays