Bitcoin Profit Taking After The Peak of $11,000
Yesterday Bitcoin hit an all time of about $11,200 before crashing roughly $2,000 then rebounding up to the low $10,000s then back below $10,000 t the $9800s and then back up over $10,000 then below $10K again. As the day went on Bitcoin pricing was riding like a seesaw and continues to cross the line above and below $10,000 this morning. Bitcoin profit taking in action.
What a roller coaster ride!
What caused it? In my opinion it’s Bitcoin profit taking. When BTC smashed through $10,000 on the evening of November 28th and then kept climbing to $10,660 and beyond a lot of people got very excited. They were so excited they engaged in Bitcoin profit taking the next day when Bitcoin climbed to over $11,300 which then drove the price down. Coinbase and other exchange websites crashed yesterday under the crushing trade volume.
So anybody that engaged in Bitcoin profit taking at almost any time up until now definitely made money. The startling fact is that there’s so much more earning potential for Bitcoin in the long term. It’s reminiscent of the now-famous Bitcoin pizza story. The gist of the story is that Laszlo Hanyecz spent 10,000 Bitcoin to buy two pizzas back in 2010. Little did he know he bought the most expensive pizza in the history of mankind. His Bitcoin then – had he held on to it – would be worth $100 million today.
Bitcoin profit taking can be a bitch.
Cryptocoin King and tech legend John McAfee forecasts Bitcoin at $1,000,000 in just three years. If he’s right, and he may very well be, the paltry profits made recently in Bitcoin profit taking will seem like pocket change by 2020. While cryptocoin traders might swing in and out of different forms of digital currency depending on which way the wind blows, the smarter investor will invest in Bitcoin as a long term play. If anything, now would be the perfect time for buying Bitcoin on a dip like this. The keenest sense of this mentality can be gleaned from the term hodl. Stay thirsty and hodl my friends.
