Is this the right time to Buy Bitcoin?!

THE PRICE of bitcoin has plummeted by more than 30 per cent over five weeks after its meteoritic rise over the course of 2017. But should you buy bitcoin?

Bitcoin’s price is famously very volatile so it is difficult for analysts to predict what will happen next and if the latest price crash will continue.

Neil Wilson, senior market analyst at ETX Capital, said: “Has the bubble finally popped? It’s hard to see the bell tolling just yet.

“Large price swings have become so normal that it’s hard to decide – we can easily see this market bounce back in very short order.

“Whilst there have been some hacks, public infighting in the mining community, lots of rumoured forks and regulatory pressure building on some fronts, this is likely to be a simple bout of risk-off selling as investors rebalance towards year-end.”It looks like it’s time to cash in the gains and spend the winnings on a bumper Christmas.”Meanwhile, Charles Hayter, founder and CEO of industry website Cryptocompare in London, suggested that a correction has been a long time coming and many traders could start selling up ahead of the new year.

“A manic upward swing led by the herd will be followed by a downturn as the emotional sentiment changes,” he told Reuters.

“A lot of traders have been waiting for this large correction.”He added: “With the end of the year in sight a lot of investors will be taking profits and saying ‘thank you very much’ and closing their books for the holiday period.”

It looks like it’s time to cash in the gains and spend the winnings on a bumper Christmas

Neil Wilson of ETX Capital

However, it is not all doom and gloom for bitcoin. The CME and its rival Cboe Global Markets have launched bitcoin futures over the past two weeks.And despite the plummet overnight, the currency is still well up on the year, rising from under $1,000 in January to around $13,000 today.Bitcoin is known to go through wild swings. In November, it tumbled almost 30 percent in four days from $7,888 to $5,555. In September, it fell 40 percent from $4,979 to $2,972.

Some experts say bitcoin will reach $1 million by 2020. Others have gone so far as to call the digital currency a fraud. Whether you’re in the optimistic group, the pessimistic group, or somewhere in between, there’s a reality check that anyone who invests in bitcoin or other digital currencies needs to hear: Buying bitcoin with borrowed money is a terrible idea.

The biggest bitcoin mistake you can make

While many people have certainly made lots of money on bitcoin, that doesn’t mean the price will continue to go straight up forever. Even if bitcoin does end up with a million-dollar price tag, as some experts have predicted, it won’t get there in a straight line. And if things go sour, bitcoin’s price can drop fast.

Borrowing money to buy bitcoin is the biggest mistake you can make as a digital-currency investor.

‘Healthy Dip?’ Bitcoin Recovers!

Suffering more were the majority of altcoins, including Bitcoin Cash, which in the 24 hours to press time had lost 32 percent of its value compared to Bitcoin’s average of 18 percent loss.

Finally, average exchange quotes focused around $14,000, representing a slight recovery for the sub-$13,000 lows earlier today which lasted only briefly.

This is probably the last chance to purchase bitcoin with the “low” price, based on famous predictions of Michael Novogratz and John McAfee, who are still very convinced that Bitcoin price will rise at least for three times more in a near future.

NOTE: This article is not an investment advice. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future

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