Bitcoin has been steadily declining for the past six months. During the last six months, the price has lost about 50%, which is rational for the Bitcoin bear market. However, this bear market, like any other, eventually comes to an end. That end could be coming soon, as Bitcoin price reached a strong support level around $33,000. In this article, we list the top 3 reasons to buy Bitcoin today.
#1 Bear Market is coming to an End
In the past, the Bitcoin price has always reached the low price of the bear market in the month of January. If we look at figure 1 below, we can see those times in January 2015, and January 2019. The last halvings were in 2016 and 2020. Since the chart history tends to repeat itself, we assume that the Bitcoin price will form the bottom of the bear market by the beginning of next January 2023 latest. So we still have about 7 months until things can pick up again. That’s why planning accordingly is crucial in order to catch the right trading setup.
#2 Emerging Halving
Bitcoin has a halving approximately every 4 years. During this event, the block reward is reduced by half, which is why half as many bitcoins per block come onto the market every 4 years. This event will take place in 2 years. Historically, bull markets have started shortly after the halving has taken place. As soon as the halving arrives, which is expected to take place on May 3rd, 2024, the bull market could start. The bear market ends sometime before the halving, which is why you should keep your eyes open.
#3 Big investors won’t let Bitcoin Price sink lower
One of the biggest investors in Bitcoin is the company “Microstrategy”. Microstrategy owns a total of 125,051 bitcoins, purchased at an average price of $30,200 per bitcoin.
MicroStrategy has purchased an additional 660 bitcoins for ~$25.0 million in cash at an average price of ~$37,865 per #bitcoin. As of 1/31/22 we #hodl ~125,051 bitcoins acquired for ~$3.78 billion at an average price of ~$30,200 per bitcoin. $MSTRhttps://t.co/bF6VImC0Qy
Michael Saylor, the founder and CEO of Microstrategy, is unlikely to let the Bitcoin price drop below $30,000 lest the company experience negative trading. Instead, Michael Saylor could decide to borrow more money so he can invest in Bitcoin so that other private investors follow suit and the price goes up. Since the last low is around $28,725, we do not expect Bitcoin to fall below this level. We would still imagine a test of the brand, but no lower courses.