If you’ve ever wanted the opportunity to look back and remember fondly how you bought low and then sold high, the crypto market is perfectly poised to give you that opportunity. Bitcoin and its competitors have all taken a dip in recent weeks, leading experts to declare them as “oversold” (meaning the price drops have outpaced their 14-day price average).
But what does that mean to investors? Being oversold is a specific term that describes when an asset’s relative strength index (RSI) falls below 30. By those standards, Bitcoin is indeed oversold, having dipped as low as 4.5 on August 18. Since then, however, the crypto coin has rallied, bouncing back up to a peak of 60 on August 23 before ending the day just over 53. In other words, investors have shifted their patterns and are now buying.
Why buy when the price of Bitcoin is so low? Business 101 teaches that you should always acquire your inventory as cheaply as you can. Whether your goal is to sell them in the near or distant future, acquiring goods inexpensively leads to greater margins.
It’s the same with investments. To see the best outcome from your chosen asset, you’ll want to get into it when the prices are as low as possible. Of course, in most cases, it’s difficult to tell when a price will fall, or how far it will fall. This is why many investment experts agree it’s not a good idea to try and time the market.
In this case, the crypto market situation is different. There are numerous major flags that indicate the market is poised to take off (to the tune of $30 trillion) if any one of three milestones happen.
The first looming possibility is the approval of BlackRock’s bitcoin-based ETF application with the Securities and Exchange Commission (SEC). If you’re not familiar with BlackRock, it’s enough to know that their application approval rating with the SEC is 575:1. BlackRock is a world class financial outfit, and the pending early 2024 approval of its crypto ETF will blow the market wide open to everyday investors.
The second potential for the crypto market surge comes from the U.S. Congress, where lawmakers are engaged full swing in creating and passing legislation that will outline the regulation of the cryptocurrency market in the U.S. Without clear guidelines in place, crypto companies and investors have been wary to push into the U.S. market due to surprise lawsuits issued by the SEC.
Lastly, the Bitcoin market will be booming next year as the coin is set to be halved in April 2024. Every single time Bitcoin has been halved in the past, it’s resulted in a bull market for the coin, and this time is projected by many to be no different. While any one of these conditions is enough to prompt significant interest in the crypto market, the concurrency of two or three of them would be enough for the reality of the $30 trillion crypto market to become a rapid reality. Of course, anyone who believes in the future of cryptocurrency understands that any time is a great time to invest, but with the latest dips and “oversold” status, we’re likely seeing a great opportunity for people to buy low while they can.