In a tweet he recently posted, Morehead laid out the facts that explain why the market is below trend, making it now one of the best times to buy.
For new investors, it’s best to buy when the market is well below trend. Now is one of those teams.# Bitcoin has only been this “cheap” relative to its trend 20.3% of the past 11 years.
— Dan Morehead (@dan_panther) June 16, 2021
For new investors, it is best to buy when the market is well below trend. Now is one of those times. #Bitcoin was just as “cheap” compared to its 20.3% trend over the past 11 years. More perspectives on market timing in our letter to investor of June.
Bitcoin below market trend?
What Morehead explains about Bitcoin pricing is clear to see. Bitcoin is currently trading 36% below its 11-year exponential trend. So, relative to that trend, or general market price direction, it’s only been so “cheap” to buy and has been trending for a little over 20% of the last decade or so.
This means that people typically pay more for BTC than they should have paid based on price movement. For those looking to buy bitcoin at a potential discount, now may be the time, as Bitcoin is usually not in trend that way.
Although Bitcoin is trading at a lower price after the slowdown in recent weeks, that doesn’t mean the market isn’t ready for a rally. Traders should be optimistic that cryptocurrency is currently cheaper relative to the trend. This, together with the fact that the year-over-year return is up to 281%, shows that there should be no concern for crypto investors and those with digital assets.
Pantera Capital is the first US-based institutional asset manager focused entirely on blockchain technology. Since their first fund in 2013, they have continuously been at the forefront of financing blockchain deals and investing in digital assets.
At blockchain letter from Pantera Capital dated 06.14.2021, they further clarify why holders should not be concerned about recent losses:
On average, more than tripling annually over ten years. Anyone who has had bitcoin for 3.25 years has earned money. Bitcoin only printed one calendar year with a lower low. So most of these investors are doing very well.
Why is the cryptocurrency market below trend?
Many factors influence why the cryptocurrency market is currently below trend. But the biggest one comes from the big drop in crypto prices a few weeks ago. With this drop, many investors feared a sell-off and fear the market could bottom out. The predominant side effect, Bitcoin is traded at a lower price compared to the trend of decades.
If you were thinking of diving into the cryptocurrency market, there’s no better time than today to get a good deal on Bitcoin’s price relative to its history.
Source: News BTC