We know you want to enjoy Christmas, but maybe you have FOMO regarding Bitcoin. Is there really an investment opportunity now?
Bitcoin is closing the year 2020 high, with prices exceeding US$ 20,000. Investors are therefore quite happy, considering that BTC has had an amazing 500% increase over its annual minimum price. It is in this Christmas context that the number of wallets with 1 BTC or more has reached its highest level ever. But is there a real investment opportunity now?
As Bitcoin spreads and decentralizes, its network is getting bigger and stronger. This adoption, fundamentally, is why the asset is back in a bull market. For now, demand continues to outstrip supply, but this always changes and adjusts until the uptrend begins again.
One thing to consider is that the crypto-currency markets on holidays tend to be slower moving on exchanges. However, a substantial amount of the billions of cryptographic derivative contracts will expire this time around. With this, volatility could see an increase.
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Why is recognizing these trends and volatility patterns important?
We know that you may be away from your computer and investment strategy, but also consider that this is when the big opportunities may arise. Price declines mean opportunities to enter the market, so if you haven’t already done so, you should keep an eye out.
This does not mean that we see a big drop coming, or that you should stop enjoying your vacation. After all, Bitcoin has been growing a lot since December 2019. Even more so since March. Therefore, opportunities can’t only arise in times of collective vacations.
Also, remember that no matter what happens, Bitcoin will still be there. Perhaps 2021 will be the year when the number of wallets with 1 BTC or more will grow even more, but more because of the increase in institutional investment than anything else.
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Christmas with Bitcoin: should you invest now?
At the time of writing this publication BTC changes hands for a price of USD 24.10,95 according to Plus500. With the expiration of Deribit options this could waver. So far the prevailing trend is to buy, which means a strong demand for Bitcoin.
However, the relative quietness of the holiday season could lead to some downside at the start of the new year. This according to technical analyst Katie Stockton, managing partner of Fairlead Strategies.
„Bitcoin is assimilating its earnings in a consolidation phase after confirming its break to new historic highs with its mid-month boost,“ Stockton said. „The previous resistance near $19,500 is now initial support. Overbought conditions have not impacted momentum,“ he said.
Enjoy your vacation, and let us tell you everything you need to know when you get back. The CryptoTrend team is here to support you with the most up-to-date and detailed information on what’s going on during this time. Let your Christmas be with your family, with Bitcoin we can help you.