The Bitcoin Market in the Midst of a Great Period of Uncertainty – Avoid These 4 Mistakes
You hold all the cards to succeed with Bitcoin.
All it took was a tweet from Elon Musk on May 13, 2021, to throw the Bitcoin market into chaos. This is what is apparent to the general public: there is no doubt that the Bitcoin price crash really started from this tweet by Elon Musk.
For those who have been in the Bitcoin world for a while, it seemed obvious that a big correction was coming. In fact, that's what I wrote at the end of March 2021: Bitcoin Price Will Crash Again in the Future, but the Lows Will Be Higher Each Time.
Some people seemed to question my assertion, saying that nothing was certain.
Indeed, I can't make any guarantees. I can only share my opinion and my feeling. Nevertheless, with a free market like Bitcoin, you can expect anything. Volatility is part of the game.
Under these conditions, you should never take for granted a situation at some point in time. Things can move up or down very quickly. Elon Musk's negative tweet was the opportunity that some whales had been waiting for several weeks to cause a crash that would allow them to accumulate more BTC.
This is what they did around $30K on May 19, 2021, when the price of Bitcoin dropped from $43K to $30K in a few hours.
A strong rebound took place before the Bitcoin price repeatedly rejected the $42K resistance. From this point on, it seems clear that Bitcoin will remain in a period of great uncertainty for a few weeks now. To help you manage this situation, I'm going to go over 4 major mistakes that you should definitely avoid.
Fear that prevents you from taking action
As I write this article, the prevailing sentiment in the Bitcoin market is still extreme fear. Bitcoin Fear & Greed index is currently at 10:
To give you an idea, this index was also at 10 in March 2020. The big difference is that at that time the price of Bitcoin had fallen to $3.6K. Everyone seems to be afraid in May 2021 when the price of Bitcoin is above $36K.
So you have to learn to put things in perspective. You have to step back to see the bigger picture. The fundamentals of Bitcoin have not changed between the ATH (All-Time High) of April 2021 near $65K and the current price in May 2021.
This crash is nothing out of the ordinary.
Everyone is scared at some point when investing. However, those who make a profit can take the long view and use their fear to their advantage. The fear you feel right now is because of the noise that is preventing you from seeing the real signal: the Bitcoin revolution.
You need to use your fear to take action rather than suffer. Taking action now will make a huge difference for your future regarding money.
Reluctance to accumulate more BTC
Those with available liquidity and confidence in Bitcoin should take advantage of the extreme fear in the market. This is an opportunity to be seized. As I frequently explain, you need to be on the lookout for any opportunity the market offers.
That drop in the price of Bitcoin from $43K to $30K in a few hours on May 19, 2021, was a great opportunity that the market offered you.
Very few will be able to take it. The whales, and probably even Elon Musk, took this opportunity to accumulate more BTC at a discount. You, on the other hand, may have been hesitant to accumulate more BTC.
That would be a shame because once Bitcoin is back around $50K, you'll have regrets. You'll probably be among those who want to buy more. Remember, there is no such thing as luck in the Bitcoin world, you just get what you deserve.
Trust and patience make the difference with Bitcoin.
Selling at a loss for fear of a crash that would never end
For many new entrants, the crash on May 19, 2021, was their first. I made sure to congratulate all those who resisted the temptation to sell their BTC at a loss because of the general panic that had gripped the market.
When the price of Bitcoin loses several thousand dollars in a matter of hours, you can go down psychologically feeling that the crash will never end.
Rest assured, a low is always hit. On this May 19, 2021, crash, it was around $30K. No need to panic, take a step back. The strong rebound we saw confirmed that the whales were still optimistic about the future of Bitcoin.
When a crash occurs, the best thing to do is to take a day off and think about something else. Come back later and you'll see that the market will have calmed itself down. This is what always happens. It's just a matter of patience.
Your job is to look beyond the chaos. That's when you'll be able to make good decisions.
Selling your Bitcoin to take small profits
Since Bitcoin's inception, many investors have been trapped by the lure of small profits. In 2013, when the price of Bitcoin first reached $1,000, many innovators sold their BTC. Their lack of patience is costing them dearly today as the price of Bitcoin reached almost $65K in April 2021.
If you are buying Bitcoin, you need to take a long-term view.
Bitcoin is a monetary revolution that will change the world of the future for the better. You must be patient to be fully rewarded. If you sell your Bitcoin, you will end up regretting it sooner or later. Bitcoin is an accumulation game for years to come.
Another mistake is related to some people who buy Bitcoin at $50K before they see a crash like the one seen on May 19, 2021. These people resist the idea of selling their Bitcoin at a loss. However, as soon as Bitcoin returns to its pre-crash price, these people sell for fear of another crash.
Again, this is a mistake to avoid. Patience is the key to taking full advantage of Bitcoin in the years to come.
Taking full advantage of Bitcoin is something that has to be earned. Nothing is ever taken for granted in life. With Bitcoin, it's the same thing. It's easy to be a Bitcoin HODLer when its price keeps rising. When a crash occurs, it requires real confidence in Bitcoin.
If you are one of those who fundamentally believe in the Bitcoin revolution, you will be able to accumulate more in these moments. At the end of the day, you will be among those who will be rewarded the most by the revolution.
It all comes down to your confidence in Bitcoin, and your patience. You hold all the cards to succeed with Bitcoin.
In Bitcoin We Trust
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