There is a classic saying by Warren Buffett that says “be fearful when others are greedy and greedy when others are fearful” and I fully agree with this statement. At the time of writing the market sentiment in Bitcoin and cryptocurrencies in general is fairly low and many investors have lost hope or are quite bearish about the current outlook. When one starts seeing comments such as “Bitcoin will never go over $10k”, it is generally a good idea to start considering buying in.
Bitcoin’s valuation has repeated certain market cycles since the beginning and while the size and timeframe of these cycles tend to differ, the same principles apply. They have times of massive bull markets with hype and growth, then we have corrections and bear markets, and then they have periods of relative stability and consolidation, and then the cycle repeats itself.
The big question is, are they in a prolonged bear market or is this more like a pause between two massive growth periods, similar to what happened in 2013?