Look at Bitcoin Price One Year Ago, and You Will Understand Why You Must Play Long-Term | by Sylvain Saurel | Feb, 2022
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In my previous Bitcoin price update, I told you that the second rejection at $45.5K could lead to a test of support at $41K. This is what happened next. Seeing the Bitcoin price bounce back after touching the area around $41K is a good thing to solidify that support. The price of Bitcoin is currently at $42.2K. Nothing to worry about in my opinion.
We need to look at the drivers that have amplified this fall to the $41K support. And in reality, they are always the same: inflation at a very high level in America and the fear of an invasion of Russia in Ukraine.
It’s always the same narrative that comes up again and again here. Inflation was released on Thursday: it is 7.5% in America for January 2022, while experts were expecting a figure of 7.2%. This brings out the rumors that the Fed may raise interest rates even faster. This creates uncertainty that the markets do not like. The S&P 500 has fallen back to just above 4,410 points, and the cryptocurrency market is experiencing a pullback as well.
On the subject of the potential war between Ukraine and Russia, all it took was for Joe Biden to speak up and tell U.S. citizens to leave the country for fear to take over. I don’t know if an invasion is imminent or not, but what is certain is that the same narrative has been repeated over and over again since the beginning of January 2022.
Each time, it causes fear that drives the markets down. If you understand the fundamentals of the markets, you also understand that you have to see these corrections as opportunities for the long term.
I looked at the price of Bitcoin just one year ago on February 12, 2021. And this may surprise you, but its price was in the same range as it is now, between $42K and $48K:
The media and the powerful people at the head of the current system constantly sell you Bitcoin as a dangerous and extremely volatile asset, but in reality, this volatility only has a short-term impact. If you adopt the best strategy to protect yourself from the manipulations of the Whales, you will see that this volatility is no longer a problem.
If you look at the price trend over the past year, that is, if you step back and look at the bigger picture, you will see that Bitcoin has been in a consolidation phase for a year. The best is yet to come, and this Bull Market is not over. Expect its price to go much higher in the months ahead.
Over the past 12 months, you would have had the opportunity to test your nerves if you had made the mistake of taking only a short-term view with Bitcoin. Judge for yourself:
You do realize that in one year, Bitcoin has seen its price rise and fall in significant proportions. This makes sense, as Bitcoin’s volatility is part of the game. If you were focused on the short term, you must have had a difficult year in terms of emotions, being alternately in extreme fear and extreme euphoria.
This is not something that will allow you to take full advantage of the Bitcoin revolution with peace of mind in my opinion. If you had stepped away from the Bitcoin price daily, you could have properly deepened your knowledge about Bitcoin and a whole bunch of other important topics.
You would come back here and almost feel like Bitcoin is a Stablecoin. I’m stretching it a bit here, but you have to see the current situation as a consolidation. In the long run, the price of Bitcoin will go much higher, but nothing happens linearly in the markets. Bitcoin will not reach $100K, or even higher, in a straight line. You will have ups and downs. To avoid letting your emotions play tricks on you, the key is to define a long-term strategy and then stick to it.
If you choose to buy Bitcoin, the best strategy is to HODL for the long term, and then detach from the price in the short term. Ten years from now, you will never thank your current self enough for that choice. You will have been able to enjoy Bitcoin safely and with peace of mind. Patience is the key here, as it always is when it comes to enjoying an asset like Bitcoin.
It’s up to you to show it. I hope this little reminder will help you do just that.
Cryptocurrency
