Analysing previous Bitcoin Bull Run cyclesDuring the 2017 Bitcoin Bull Run, the price of Bitcoin rose by almost 10x from $2 000 to $20 000 before it crashed. During this bull run there were many crashes (40 – 50%) that caused the market to panic. Even during the 2013 Bitcoin Bull Run, market consolidation occurred. It is not uncommon for the market to crash during a bull market. The people that make money during a bull market are the whales and hodlers.
Is the 2021 Bitcoin Bull Run over?According to Bobby Lee, a board member of the Bitcoin Foundation, the recent decline in the Bitcoin price was just a temporary correction. Lee believes the real 2021 Bitcoin bull run “is yet to come.”
According to research by Glassnode, a blockchain research company, newbies are primarily behind the latest panic selling. Glassnode’s research suggests that majority of panic sellers bought their cryptocurrencies during the recent bull market and have been holding on to their coins for no more than 155 days.
The Crypto Fear & Greed Index is a very important tool that can give traders an indication of what the market’s morale is. For the last week or so, the indicator has shown “Extreme Fear”. This usually indicates that investors are worried about market volatility and should be seen as a buying opportunity. This level was last seen at the start of the current bull run back in April 2020. Very interesting!
AltCoinTrader’s Richard de Sousa said he is very bullish on Bitcoin.
“We are not in a bear market. We are seeing a correction. All the fundamentals are in place so that we will see continued upside with cryptocurrency. There are millions of technical people working in the space on a daily basis to roll out an amazing alternative financial system. And simply put, in the end the best technology/best financial system will win.”
De Sousa said in his latest YouTube Video due to Bitcoin’s strong fundamentals, cryptos and the entire financial system will continue to be adopted throughout the world.
How to make money during the 2021 Bitcoin Bull RunIn the video “Bear Market Secret Weapon”, De Sousa talks about how traders can still make money during a bear market with Dollar Cost Averaging. If you had invested $10 a month a year back, you now would have made an 80% return. Having invested $130, you would have $232 today.
“It is important that you are disciplined and allocate a certain amount of money to buy cryptos every month. In the long term, your crypto portfolio will increase and it gives you a better chance to be on the winning side,” De Sousa says. In conclusion, it is important to take the emotion and the guess work out of your crypto investment strategy and have a solid plan.