“Fast Money” trader Brian Kelly breaks down the surge in the price of Bitcoin on CNBC with a final note that says that despite the rise, it is not too late to buy into the digital currency.
He says the currency had a phenomenal run this year growing in value by 100 percent even though its price chart had maintained a long outlook between 2014 until now merely moving sideways in response to big price changes.
So, should you buy Bitcoin?
Though Kelly expects a breakout when there is an acceleration with more use cases in the coming year, Kelly admits that the worsening situation in China will help Bitcoin to go over its current three-year high and new use cases will come up in 2017 to be sources of demands.
Perhaps this will answer the question of some onlookers on whether there could be a dip very soon creating the chance of Bitcoin crashing again as it happened in 2013 so that they can buy low.
With a similar pattern in play now, an upsurge in price preceded a zero-sum game situation three years ago which lead to a low. Subsequently, panic crept in and several Bitcoin owners were forced to sell their coins which benefited traders only.
A 50/50 chance of a dip
Some chose to sell half of what they had to be safe from losing all since no one can actually say what to expect about Bitcoin.
Though not fully predictable, those looking for a reoccurrence need to rethink. Unlike 2013, there has been a better sense of understanding of how the currency works today. Also, Bitcoin’s value and use have also increased in recent years.
While there could still be a 50/50 chance of a dip happening soon, trying to time the market could be hard.
The recent spike has attracted media attention which seems to be directed to the West where not much of Bitcoin has been bought yet.
If the media coverage attains a little success, a dip would be the least of our worries to address, but a swell in the current price of Bitcoin as the knowledge of its priceless service offers a form of freedom to those seeking an alternative to fiat currencies soars.