Buying Bitcoin is a little like buying a home. You want to get the timing right to maximize your gains and minimize your risks. The only problem is that the real estate market is predictable compared to Bitcoin's volatile price charts. One day the price skyrockets while the next day it plummets. If you’re looking at these charts to determine "Is today a good day to buy Bitcoin?" you're not alone. Countless potential investors have the same question. The answer can mean the difference between a favorable investment and one fraught with danger. Understanding how supply and demand affect Bitcoin's price can help you answer this question and make an informed investment decision.
One of the best tools to help answer the question, "Is today a good day to buy Bitcoin?" is Bitcoin Magazine Pro's Bitcoin Analysis. This resource can help you make sense of the current market conditions and what they mean for your investment.
Bitcoin Rises 3% After Topping $73,000 for the First Time Since March
After a prolonged period of stagnation, Bitcoin is on the rise once again. On October 28, the price of Bitcoin climbed above $73,000, nearing its all-time high, as investors counted the days until the U.S. presidential election. The rise in Bitcoin's price was triggered by a wave of short liquidations. According to CoinGlass, Bitcoin has seen more than $113 million in short liquidations in the past 24 hours.
An Optimistic Market Ahead of the U.S. Presidential Election
Bitcoin has been confined to a tight range between $55,000 and $70,000 for a year. The digital asset has wrestled with the $70,000 level several times this year, and earlier forays above that level have become mere blips. Optimism is building ahead of the U.S. presidential election next week. Bitcoin has also benefited from broader risk-on sentiment in the market, with stocks hitting new highs this month even with rising rates, the return of demand for Bitcoin ETFs and other Federal Reserve rate policy decisions on Nov. 7.
“Many things are going right for Bitcoin, including a soft landing for the economy, Fed rate cuts, and a likely change in the U.S. regulatory climate regardless of who wins the U.S. election,” said Grayscale Investments head of research, Zach Pandl. “As long as these trends continue ... Bitcoin can continue to make it to new highs into the year-end.”
Trump vs. Harris: Will The Results Impact Bitcoin's Price?
Republican nominee and former president Donald Trump has been courting the digital currency this year and presented himself as the pro-candidate. Democratic nominee and Vice President Kamala Harris has been more muted on Bitcoin, and the industry is split on how her potential presidency could affect Bitcoin companies.
The outcome is widely viewed as a key catalyst for the price of Bitcoin, but investors have been watching and waiting as the election approaches. Bitcoin's price has increased 7% in the past week. The digital asset is now on pace to end October up 14%, making it its best month since March.
Related Reading
- Is Bitcoin Overvalued
- Could Bitcoin Go to $1 Million
- How to Make Money With Bitcoin
- How to Pay With Bitcoin
- Why Is Bitcoin Going Down
- How to Use a Bitcoin ATM
- How Much Bitcoin Should I Buy
- How to Make Money With Bitcoin for Beginners
Is Today a Good Day To Buy Bitcoin And Why?
The question of when to buy Bitcoin is complex. Many factors influence the price of BTC, and they can change quickly. When considering whether to invest right now, Bitcoin's recent price trends, market sentiment, and economic conditions all come into play.
Bitcoin's price has been recovering from the crash it suffered in 2022. After reaching an all-time high of nearly $69,000 in November 2021, Bitcoin plunged to around $16,600 in January 2023. Since then, the price has steadily climbed and recently crossed the $70,000 mark.
Short-term outlooks should account for potential market volatility, while long-term perspectives can benefit from historical trends. Technical indicators, expert predictions, and the broader economic climate should also be considered.
Understanding Bitcoin's Halving Cycle
A definitive answer to the question of when the best time to invest in Bitcoin remains elusive, given that Bitcoin's price is governed by so many different factors. Several key indicators can guide you in deciding based on your risk tolerance and investment objectives.
One such indicator is the Bitcoin halving event, which cultivates a scarcity market sentiment that propels Bitcoin's price upward, driven by the anticipation of reduced supply. As mentioned above, Bitcoin's price has grown significantly in the months and years after a halving event.
How Bitcoin Halving and Institutional Investment Influence Price Dynamics
Since Bitcoin successfully halved in April 2024, it’s become more difficult for miners to complete transaction blocks, which implies that the amount of BTC entering the market is lower. This, in turn, leads to an increase in price and demand.
We’ve seen institutional players continue to increase their BTC holdings. Post-halving, MicroStrategy has acquired 11,931 more bitcoins, bringing its total to 226,331 BTC as of June 2024. The country of El Savador has continued to stash more bitcoins, with its holdings at 5,750 BTC as of May 2024.
Analyzing Short-Term Market Trends
Should I Buy Bitcoin Low and Sell High? Buy low, sell high is a fundamental investment principle. Applying it to Bitcoin can be tricky, due to its substantial volatility. Rather than trying to time the market, which could lead to impulsive decisions driven by market swings, it's typically recommended you consider a long-term Bitcoin investing plan.
When it comes to Bitcoin, accurately predicting price shifts for buying low and selling high can be challenging. Instead of trying to time the market, an approach called dollar-cost averaging (DCA) is often advised. In this strategy, you regularly invest a set amount of money, regardless of Bitcoin's current price. This helps lessen the impact of market volatility since you buy more Bitcoin when prices are low and less when they’re high.
DCA reduces your average cost per unit over time and promotes consistent investing instead of reactive decisions based on market fluctuations. It allows you to benefit from Bitcoin's potential long-term growth as you gradually accumulate more units of BTC. While buying low and selling high may sound appealing, it can be challenging to implement with Bitcoin's volatile nature. A more systematic strategy, such as dollar-cost averaging, could offer more reliable long-term returns.
Experts Predict Bitcoin’s Price Will Reach Six Figures
For those considering Bitcoin as a long-term investment, it’s worth considering experts’ thoughts on its future. In February, veteran analyst Peter Brandt said that if Bitcoin could break past its previous high, it could easily reach a new record of US$200,000 by September 2025. Only two weeks after the interview, Bitcoin surpassed the US$72,000 mark in the early hours of March 11.
“I've seen estimates anywhere from US$75,000 to US$150,000, which I think are reasonable in the next 12 to 18 months,” Peter Eberle, President and CEO of Castle Analytics, told the Investing News Network in an interview before the Bitcoin halving in April.
Industry specialists surveyed in early 2024 by UK fintech firm Finder shared somewhat more conservative estimates, although they are still quite promising and point to prices above US$100,000 shortly. They believe that Bitcoin could rise to roughly US$122,688 by 2025, and US$366,935 by 2030.
Diverging Bitcoin Outlooks: Analyzing Bullish Predictions vs. Skeptical Perspectives
In March, ARK Invest CEO Cathie Wood made an astronomical prediction about Bitcoin: It could be worth over US$75 trillion by 2030.
Only some people are so optimistic about Bitcoin's prospects. Pav Hundal, lead market analyst at Swyftx, has expressed concerns about Bitcoin's future in the context of continued geopolitical upheaval and economic uncertainty. Billionaire investor Warren Buffet, meanwhile, has not minced words regarding his opinion on Bitcoin and its future.
According to Buffet, Bitcoin is an unproductive asset with no unique value. He also feels that it doesn't count as a true currency — in fact, he called it “rat poison.” Moreover, he believes that the market as a whole will end badly.
Major Bitcoin Holders: Key Companies, Countries, and Individuals Shaping the Market
Regardless of whether you believe Bitcoin's proponents or naysayers, it's clear that it has some incredibly prominent backers in both the investment world and the wider business landscape. Business analytics platform MicroStrategy (NASDAQ:MSTR) is by far the largest public company in the Bitcoin space, with 226,500 Bitcoin to its name as of August 8. The next three public companies with the largest Bitcoin holdings are Marathon Digital Holdings (NASDAQ:MARA) with 20,818 Bitcoin, Tesla with 9,720 Bitcoin and Hut 8 (NASDAQ: HUT) with 9,109 Bitcoin.
The US, China and the United Kingdom hold the top three spots for countries with the most Bitcoin with 207,189, 194,000, and 61,000 Bitcoin respectively at that time.
There are also plenty of individuals with large holdings, the most significant of which is believed to be Bitcoin's creator, Satoshi Nakamoto. Other prominent names include Michael Saylor, Cameron and Tyler Winklevoss and Tim Draper.
Related Reading
- What Moves Bitcoin
- How to Sell Bitcoin
- Will Bitcoin Reach 1 Million
- How to Value Bitcoin
- How Long Does It Take to Mine 1 Bitcoin
- When Is the Best Time to Buy Bitcoin
- What Makes Bitcoin Valuable
- How to Transfer Bitcoin to Bank Account
- How to Send Bitcoin on Cash App to Another Wallet
- How to Buy Bitcoin Anonymously
- Apps Like Cash App for Bitcoin
8 Best Bitcoin Charting Tools & Price Trackers
1. Bitcoin Magazine Pro: The Ultimate Bitcoin Analytics Hub
Bitcoin Magazine Pro offers a comprehensive set of Bitcoin analytics tools, designed to help investors and enthusiasts better understand Bitcoin through data. The platform provides a wide range of free, regularly updated Bitcoin charts, each accompanied by detailed explanations to make complex information accessible.
For those looking to dive deeper, paid tiers offer features like:
- Chart alerts
- Exclusive indicators
- In-depth market reports
Whether you're a curious Bitcoin investor wanting to grasp the factors influencing Bitcoin's price, or an analyst eager to expand your knowledge, Bitcoin Magazine Pro aims to provide clarity and insights to support more informed decision-making in the Bitcoin space. Save 30% on Bitcoin Magazine Pro's Bitcoin analysis tool today when you sign up on our annual plan!
2. TradingView: Charting Bitcoin and Beyond
Thanks to its wide array of technical indicators and BTC pairs, TradingView is the most well-known and widely used price tracker and social network for traders and investors. The platform was launched in September 2011, making it one of the oldest charting platforms like Bitcoin.
What’s more? If you’re just getting started in digital currency, you can begin with TradingView for free until you’re confident about investing in pro and premium subscriptions.
3. CoinMarketCap: The Go-To Bitcoin Tracking Tool for Beginners
CoinMarketCap is one of the most popular platforms for tracking:
- BTC prices
- Market capitalization
- Trading volumes
Beginners can use CoinMarketCap to monitor Bitcoin’s price and see real-time changes across multiple exchanges. The platform also provides detailed information on:
- Market trends
- Historical data
- Other valuable metrics
With its user-friendly interface, CoinMarketCap is ideal for beginners to stay updated on Bitcoin’s price and market conditions.
4. Binance: An Easy-to-Use Bitcoin Exchange for New Investors
Binance is a leading Bitcoin exchange that provides beginners with a seamless trading experience. Binance also offers educational resources, such as tutorials and market analyses, helping beginners understand the basics of Bitcoin trading. Binance’s interface includes a simplified view for new traders and an advanced one for those wanting to dive deeper.
5. CryptoCompare: An Advanced Alternative to CoinMarketCap
Another best Bitcoin price charts provider is CryptoCompare, a well-known alternative to CoinMarketCap. Founded in early 2014, the site has strong partnerships with reputable companies, delivering Bitcoin data to industry-leading institutions such as VanEck (through MVIS) and Thomson Reuters (through Refinitiv). They track over 5,000 coins including some that CoinMarketCap does not list.
Their API is considered one of the most advanced in the industry, as evidenced by its partnerships, making it a good choice for advanced traders and companies who wish to carry out complex operations on its data or acquire high-quality real-time digital asset data. They also operate special sections which:
- Review exchanges
- Wallets
- Miners (ASICs)
6. Coingecko: Get the Full Picture on Bitcoin Metrics
Coingecko is an early-bird in the BTC space founded in 2014. Founders Bobby Ong and TM Lee believed that community metrics mattered as much as price data, and track statistics such as Github commits and code activity, community data from:
They are currently the largest data aggregator by website traffic and alexa rank after CoinMarketCap, and the largest independent price tracker since CoinMarketCap was acquired by Binance.
7. Livecoinwatch: An Alternative to CoinMarketCap for Simple BTC Tracking
Together with Coincodex, LiveCoinWatch appeared in late 2017 as a primary competitor to CoinMarketCap during the height of the Bitcoin craze. LiveCoinWatch became a popular alternative to CoinMarketCap as a result of a controversy in which the latter was accused of bias through the removal of South Korean exchange data. They have a very similar interface to CoinMarketCap and are based in the US.
8. Santiment: The Bitcoin Data Analytics Tool for Serious Investors
Santiment is the virtual equivalent of the ubiquitous Bloomberg Terminal, acting as a BTC data feed for investors. The Santiment team who are all dedicated to eliminating information asymmetry made up of:
- Entrepreneurs
- Developers
- Researchers, Engineers
- Scientists and PhDs
They provide behavior analytics and monitoring capabilities for various information points, going beyond simple metrics to make advanced conclusions and data predictions that help the user make a more informed decision in their trading.
Unique and complex metrics such as MVRV Long/Short divergence created by their researchers have proven successful in predicting major trend shifts in Bitcoin. Price alerts, as set up on Santiment, can be for almost anything, even something obscure such as a single whale’s activity or a network anomaly, and are low-latency. This means that the investor can structure their investment decision with minimal time delay from the alert.
Related Reading
- Best Bitcoin Mining App
- Best Way to Invest in Bitcoin
- Best Bitcoin to Invest In
- Best Bitcoin Mining Software
- Best Bitcoin Books
- Best Bitcoin ETF to Buy Now
- Best Bitcoin Stock
- Best Bitcoin Miner Stocks
Save 30% on Bitcoin Magazine Pro's Bitcoin Analysis Tool With Our Annual Plan
Bitcoin Magazine Pro is a comprehensive platform that offers a set of Bitcoin analysis tools designed to help investors and enthusiasts better understand Bitcoin through data. The platform provides a wide range of free, regularly updated Bitcoin charts, each accompanied by detailed explanations to make complex information accessible.
For those looking to dive deeper, paid tiers offer features like:
- Chart alerts
- Exclusive indicators
- In-depth market reports
Whether you’re a curious Bitcoin investor wanting to grasp the factors influencing Bitcoin’s price, or an analyst eager to expand your knowledge, Bitcoin Magazine Pro aims to provide clarity and insights to support more informed decision-making in the Bitcoin space.