There has been a sudden uprise in price in the bitcoin market, during the past few days, where the price of 1 bitcoin moved past the $10,000 borderline, and this has gotten Investors and traders a bit excited, as it seems the market is exploding, profit is compounding and they look forward to more increase.
But even this state of the market, there is a need for us to analyze the variables, before making significant decisions. Some investors or new buyers might be tempted to acquire more coins at the moment, in hope or expectation that the trend would continue, that is, that the price of the cryptocurrency would continue to increase.
Individuals or corporations that are planning on making such a step, might be at the verge of taking a very huge risk. Bitcoin in the past has had such sudden bump, where the price went significantly high for a few days, and later went down so much, that it shook the entire market. There was an example of this at the beginning of the second quarter this year, where the price moved from $7,000 to $10,000 and in a matter of days, went straight back to $6,000.
For those considering acquiring new coins, it’s advisable to wait a little bit, till when the price is normalized for a couple of weeks, before buying. Because this uprise might be deceiving and may not last for long.