Is It Too Late to Invest in Bitcoin? How to Time Your Entry During a Bull Run

The post Is It Too Late to Invest in Bitcoin? How to Time Your Entry During a Bull Run appeared first on Coinpedia Fintech News

In the last 30 days, the Bitcoin market has recorded a growth of over 35.0%. On November 6, the market broke above its previous all-time high of $73,000+. And, right now, the Bitcoin price stays nearly 30.95% above its mid-March ATH. Recently, between November 23 and 26, the market saw a drop of 6.92% – the first major correction since November 5.

The question that bothers Bitcoin enthusiasts at present is: ‘Is it too late to enter BTC’? Let’s analyse the situation and understand the best strategies investors can consider at this stage. Ready? 

Bitcoin Bull-Bear Market Cycle Indicator: What It Says 

The Bitcoin Bull-Bear Market Cycle indicator of CryptoQuant indicates that the BTC market has not yet reached its Extreme Bull phase. What this suggests is that there is still more room for growth in the Bitcoin market.

Bitcoin Historical Drawdowns in Bull Markets 

It is not unusual for the BTC market to experience corrections during bull runs. During the 2017 bull run, the market experienced nearly 22% drawdown. During the year 2021, it saw at least 10% to 30% correction. This year, the market has undergone 15% to 20% correction.

Experienced traders view corrections as opportunities to enter markets at lower prices.

BTC Buying Strategy Using Short-Term Holder Realised Price    

CryptoQuant experts recommend buying BTC at the Average Cost Basis of Short-Term Holders. The rationale behind the recommendation is that the Short-Term Holder Realised Price serves as a critical support level during bull runs.

BTC Buying Opportunities from Open Interest Flushes   

Rising prices entice speculative bets, increasing open interest. The experts point out that when speculative positions are liquidated, prices often drop, presenting buying opportunities for investors.

Analysing Bitcoin Net Taker Volume for Entry Points 

The Bitcoin Net Taker Volume (24HMA) chart shows that the Net Taker Volume index remains below $30,000,000. The experts note that the Net Taker Volume below $30M signals peak selling pressure. They consider this as a prime time to enter the BTC market, as they believe that this creates room for a potential price rebound.   

In conclusion, Bitcoin’s bull market offers both growth potential and strategic entry points.