Bitcoin Crashes 53% - When Is The Best Time To Buy?

#bitcoin #crypto #cryptocurrencies
I explain when is the best time to buy Bitcoin following its recent 53% crash. Step by step.

► Click Here To Subscribe: https://www.youtube.com/c/RektCapital?sub_confirmation=1
► 3Blue1Brown video: https://www.youtube.com/watch?v=Kas0tIxDvrg&feature=youtu.be
► My Technical Analysis Course: https://gum.co/rektcapital
► My Risk Management Course: https://gum.co/riskmanagement
► My Website: https://www.rektcapital.co/
► Follow me on Twitter: https://twitter.com/rektcapital

Bitcoin has crashed 53% in 48 hours so when is the best time to buy? After all, you have to buy when people are fearful and sell when people are greedy. So is it time to be greedy, seeing as many people are fearful?

Extreme Fear tends to precede financial opportunity. But this time, the fear is on a global scale as the world experiences a global pandemic. The coronavirus outbreak has shaken people’s sense of safety to their core. If we talk about Maslow’s Hierarchy of Needs, then physiological needs and a sense of safety are the very base needs that people strive to tend to.

But in times of turmoil due to COVID-19, these basic needs are being challenged. And this is what provokes extreme fear. And extreme fear has led to extreme behaviour such as stockpiling and self-quarantining. All of these measures of course are perfectly legitimate as they will help reduce the infection rate of the Coronavirus, but these are still extreme behaviours that goes against our habits and daily routine.

The way to think about this is that if Coronavirus mentions increase, uncertainty and fear in the minds of investors increase. This is not good for Bitcoin’s price as people do not want to hold an uncertain, high-risk, volatile, speculative digital asset like BTC during times of turbulence and turmoil. In fact, investors wish to seek certainty and take on risk-avoidance approaches, which unfortunately will negatively impact the price of BTCUSD.

So when is the best time to buy Bitcoin? We have to look at two types of growth curves in terms of the Coronavirus. After all, the Coronavirus is a keyword that is strongly correlated to Bitcoin. Coronavirus and Bitcoin share an inverse relationship. Whenever mentions in the Coronavirus increase, Bitcoin’s price decreases. And vice versa.

The best time to buy Bitcoin is when the Coronavirus infection rates begin to decrease. Two mathematical curves can help explain this better. Most countries are experiencing an exponential increase in the growth rate of the infectious disease. This is the exponential curve whereby we see doubling or even tripling of the new confirmed COVID-19 cases. But the second curve is the logistic curve whereby we see the slowing in the progress of the exponential curve and in fact the growth rate of the coronavirus begins to taper off.

The logistic curve has an inflection point where the amount of new coronavirus cases remains constant. This tends to precede a tapering off in the exponential growth curve and this is when the curve become a logistic curve. It is this inflection point in the growth rate of coronavirus cases that will coincide with psychological inflection point whereby investors will adopt more of a risk-seeking approach to gain exposure to Bitcoin. The best moment to buy Bitcoin is to time this inflection point by observing the global growth rate of the coronavirus and gain exposure the asset in a time where global uncertainty and fear begins to decline.

What are your thoughts about today’s video? Feel free to leave a comment below! Thank you for watching the video. If you enjoyed the video, please feel free to drop a Like and Subscribe for more videos like this in the future.

For advertising or other business inquiries - feel free to get in touch at rektcapital@gmail.com