This is the next best time to buy Bitcoin. This has been noted by Forbes in reference to recent market research by Adamant capital, a financial services firm. In the past, the firm has been lamenting that Bitcoin has never been held at its real value implying the virtual currency is worth much more.
As per the report, the next best time to buy Bitcoin is now since the current “bear market represents an exceptional opportunity for value investors.” The report calls the current market condition an “accumulation phase.” During this phase, the value of Bitcoin is supposed to range between 3,000 and 6,500 U.S dollars.
In November last year, Adamant Capital records, Bitcoin lost 48 percent which was attributed to retail crypto traders leaving the market. This was Bitcoins capitulation.
According to the report:
The recent price rally from $4,000 to over $5,000 markedly improved HODLer’s Unrealized P&L improving our reported sentiment value from capitulation to hope. High Bitcoin volatility can be proxy for the involvement of trigger-happy retail speculators, whereas low volatility tends to coincide with phases of consolidation, apathy, and accumulation.
Adamant Capital’s analysis observes that Google Trend’s searches in regards to Bitcoin have dropped to reach levels witnessed towards the end of the first quarter of 2017. By then, Bitcoin was exchanging hands at 1,500 U.S dollars.
The report acknowledges the presence of HODLers who have been depicted as having an incredible impact on the price of Bitcoin and the cryptocurrency market at large. As per the authors of the report, these HODLers sold a massive chunk of their holdings in mid-November 2018. Interestingly, within two days, Nov 14-16, 70K Bitcoin days were wasted. Note that Bitcoin days are calculated by multiplying the number of days Bitcoin had been dominant with the amount of Bitcoin sent.
Even though the report indicated that the best time to buy Bitcoin is now, it reiterated that Bitcoin is still massively undervalued.
Do you also think that the time to buy Bitcoin is now?
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