Bitcoin has made its way back into the $32,000 price range and that has a lot of people excited. Perhaps the bull run is back on. But if you zoom out just a bit, you will soon see that we are now back at the price range that we have been ranging in for two months now. We just can't seem to break the $31 to $35k price range. We are in doldrums of a very peaceful time when it comes to bitcoin's price. Let me tell you how this is a great opportunity that you must take advantage of.
Yes, as I just stated, outside of the recent price dip and raise; overall the price has been doing next to nothing. If you have been an investor for a while, you will soon learn that the summer can often be a time where little to no action takes place. People go outside, take trips and holidays, spend more time with family and put their focus in other areas. This can lead to trading volume to become quite low. Which often results in the price having little to no change for an extended period of time, or have a few months of being in the red. For the average day investor, this can lead them to either panic and sell, or to become bored and lose interest or motivation to continue investing into bitcoin or other assets.
You need to be very careful to avoid that last mistake.
Most people believe that the best time to buy bitcoin is during the deep price dip days. I completely agree, that is the best time to purchase. But there is another time to buy that also gives you a very good opportunity to be success. This time is actually ignored by a large portion of the market. On days the market is pumping and in the green; people will FOMO into bitcoin because they have a fear of missing out. They feel making money is all but guaranteed. But, there is also a large group of people who will only invest on the deep red days. Being greedy, when others are fearful. This is when the most money is made.
But there is a third period that I would argue is equally as important, if not more important. The days where the market isn't moving; when the price of bitcoin is doing next to nothing. These are days that you need to take advantage of. While it is true that I was able to acquire most of my bitcoin holdings during the March 2020 price crash, changing my financial destiny. Not many people remember what happened after that. In May of last year, the bitcoin halving took place; cutting the bitcoin block reward in half. At that time, the price of bitcoin rushed up to a price range of $8k to $10k. And then it stopped, and the price didn't go anywhere. From May until late 2020, we had a period where the price of bitcoin was flat. Just think how amazing an opportunity it would be to buy bitcoin at those same prices today! For a period of 5 months it was an accumulators dream. When bitcoin is boring, that is the best time to buy.
But, many people missed out. Like I mentioned above, on red or green price days, people will have conviction in one way or another for which direction bitcoin is heading towards. But with long periods of nothing happening; people will have no feeling at all. They become indifferent and do nothing.
When you become a successful investor, one of the first things that you will begin to learn is that successful investors never stop investing once they have found their treasured asset. Day in and day out, they will put money into the asset that they truly believe in and let compounding work its magic for them. This is what makes dollar-cost-averaging so power. Far too many people are their own enemies and prevent themselves from being successful.
Throughout the year, there are only 7 to 10 extremely profitable days to be investing into bitcoin. Fortunately those 10 days are so profitable that it still makes investing into bitcoin extremely profitable. The problem is with this; if you are only investing during the price up days. Then you will be missing out on some of the best days you can have. Being successful is more about having the time in the market, and not trying to time the market.
I do understand a persons dilemma. Right now is quite a stressful period of time. Are we still in a bull market, or have we drifted into a bear market? No one really knows for sure. This year being much more of an outlier because of factors such as Covid and government fiat printing. It is definitely a time period that will be talked about in history books. As for me, I'm always buying. I put in my average dollar-cost-averaging on price upwards days. I put even more into bitcoin during periods of little to no action. And then I put the most in during the amazing price dip chances like March of 2020, and also during this recent price dip period we have been seeing.
It all leads back to one thing. Have you put in the time to truly learn about bitcoin and have your own conviction? Have you built your own investing strategy that you vow to stick to no matter what the emotions or the market currently are? Once you master your emotions, which is essential to investing, that is when you will become truly successful in bitcoin.
Just Do It. Remember, when bitcoin is boring, that is the best time to buy.
How about you? Do you take advantage of the periods in bitcoin where there is next to no activity? What is your bitcoin investing strategy?
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As always, thank you for reading!