| Investor's take
It's a pretty common joke in crypto that prices crash around a convention. It happened during Bitcoin 2021, and it repeated this week leading up to Bitcoin 2022. While I have no plausible explanation for this, it is a situation that has happened over and over.
Bitcoin's price has dropped almost 10% over the past week, as you can see from the four-hour candle chart on TradingView above. Here is the full chart.
I can't predict what will happen tomorrow. It may go back up and keep going up, and it may continue to dip lower.
What I can say is that if you are planning to use dollar-cost averaging to accumulate bitcoin over the long-term, which I do, research has shown that making larger purchases after periods where bitcoin has fallen in value is a successful strategy. This approach is an example of enhanced dollar-cost averaging, and it was tested very thoroughly by two economists in 2011.
I condensed and simplified their report this week, and I added a twist to explore how this could be used with crypto in my latest research piece, which you can read here.
In any case, while I am not a financial advisor, I do recommend the utmost caution in attempting to time the market for crypto trading, especially right now.
As always, do your own research.
Join us!
If you're in Miami, you already know it's a great time to meet other crypto enthusiasts and make new friends. Good luck finding us, but fellow analyst Jason Deane and I are both here, and we would love to meet you!
Either way, I will speak with you soon enough!
Sincerely,
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