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The price of Bitcoin crashed in the middle of May 2021. You all know what this crash is due to FUD related to China, but also to an attempt by Elon Musk to manipulate the price of Bitcoin. For the latter, this is my opinion, and of course, I have no formal proof.
Nevertheless, more and more people feel this way, as shown by the fact that Elon Musk's tweets are having less and less impact on the Bitcoin market.
Everyone seems to have moved on from Elon Musk. His opinion on Bitcoin is irrelevant. Better to make your own opinion on your own rather than blindly follow the advice of a supposedly whimsical expert.
Many people seem to be annoyed by the sideways movement of the Bitcoin price right now
Since the beginning of June 2021, the price of Bitcoin has been moving sideways with an increasingly narrow range between $32K and $35K.
This is not unlike what happened in the summer of 2020. At that time, the range was between $9K and $10K. After several weeks of sideways movement, the price of Bitcoin was able to start its bullish rally in early October 2020.
At the moment, you obviously have no guarantee that the exit from this period that some consider boring will be upwards. However, several charts do seem to confirm that the big opportunity for the coming months with Bitcoin is now.
Since the middle of June 2021, there has been a reversal of the trend seen in May 2021, with more and more BTC leaving the exchanges every day to go to cold storage.
While those who believe in Bitcoin accumulate more, others are stuck in a vicious cycle
Over the last two weeks, this represents an average of 2,000 BTC leaving the exchanges every day. This suggests that players with a long-term view of Bitcoin are in an accumulation phase while the Bitcoin price is moving sideways.
For them, the Bitcoin Bull Market is far from over. That's my feeling too.
However, many people get caught up in a vicious circle. Some of them contact me to ask whether they should wait a little longer for the price of Bitcoin to fall before starting a DCA (Dollar-Cost Averaging) buying strategy.
These people are the typical example of those who constantly miss out on the Bitcoin revolution due to a lack of confidence.
The vicious circle they are in can be diagrammed as follows:
These people see that people are panicking and selling their Bitcoin en masse. This causes the price of Bitcoin to fall, which leads to Bearish sentiment in the market. As the market becomes Bearish, more and more people panic which continues to fuel selling pressure.
As you can see, this is a vicious cycle.
To get out of this vicious circle, you need to put aside the short-term price of Bitcoin and focus on the Bitcoin revolution
The problem is that these people only see the price of Bitcoin. They can't get past the short-term price of Bitcoin to see its fundamentals and the impact it will have in the long run.
Those who can do this are taking advantage of the current period to accumulate more Bitcoin every day. It is clearly no coincidence that an average of 2,000 BTC has left the exchanges each day over the past two weeks.
These are people with a long-term view of what is to come for Bitcoin.
So to break out of this vicious cycle, you need to stop focusing solely on the price of Bitcoin. Instead, focus on the Bitcoin revolution. It just keeps getting stronger. Once you make this effort, you will understand that every moment is a good moment to attack a DCA buying strategy with Bitcoin.
If after your initial purchases the price of Bitcoin drops, you can accumulate more at a discount.
Final Thoughts
The secret with Bitcoin is to follow 4 essential rules that too few people follow to the letter:
HODL Bitcoin for at least 4 years to take advantage of a full Halving cycle. The best thing is of course to have at least a 10-year vision in my opinion.
Define a strategy with Bitcoin, and stick to it no matter what.
Ignore the short-term price fluctuations of Bitcoin. It’s just noise. Focus on the real signal, which is the Bitcoin revolution.
Keep Stacking. Great successes are built over time. With Bitcoin, it’s the same. Be patient. Time is on Bitcoin’s side and its future success is clearly inevitable.
Those who have followed these rules have never lost money with Bitcoin until now. So getting into DCA mode now is a good thing if you have fundamental confidence in Bitcoin. If you haven't reached that level, you may be stuck in this vicious cycle indefinitely.
You'll get out when the price of Bitcoin represents its flight into uncharted territory. At that point, you will pay a much higher price for your Bitcoin. That will be the price you deserve because you will have chosen not to take advantage of the incredible opportunity the market is offering you in the summer of 2021.
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