Where to go when making your first cryptocurrency purchase. Is now the right time to buy?
As FUD sets in for the crypto market (fear, uncertainty and doubt) new traders are asking if now is a good time to buy cryptocurrency.
Bitcoin (at the time of writing) is hovering above the support level at $30,000. This is a level we have touched four times while in this current channel for the last month or so.
We first touched this level on the 19 May, then Bitcoin came close again a few days later on the 23 May, after coming down to around $31k.
On the 8 June we touched the level again before ranging back up to around $40k.
Now, we have returned to the $30k level once more the question is: will Bitcoin bounce back up and continue to range? Or have the bears finally gathered enough momentum to smash through the support at $30k?
Time will give us the answer to this question. However as FUD has been increasing in the last few days with the news that China has officially banned crypto mining operations – causing many to cease their activities until they can relocate – many analysts are fearing that Bitcoin will enter a new bear market sooner than anticipated.
Where to buy cryptocurrency
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Should Bitcoin holders be worried?
The old adage from Warren Buffet may be worth considering in times like these: “Sell when others are greedy, buy when others are fearful”. The market may well recover over the next few weeks and continue on its previous runs.
Previous market cycles have shown us that when the cryptocurrency market has bullish cycles there has always been a correction around halfway through. Although its impossible to know if that’s what we are in right until the benefit of hindsight, there will have been a lot of traders who regretted selling their holdings in previous market corrections, only to see the market rally and reach new highs.