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The original was posted on /r/cryptocurrency by /u/Johnny-Joseph on 2023-08-12 01:07:19.
People always say - “If Bitcoin reached $20,000 or $15,000 right now I would buy straight away”.
really?
Unfortunately this is not true.
When the prices go up and you feel like you missed the train, yes, you will think that way and appreciate the cheap price it was at, but in the moment of truth, the feelings are completely different.
Our main emotion is of course fear.
It’s not for nothing that one of the well-known index is called the “fear and greed index”, because these are the two strongest emotions of investors.
In the case of a sharp drop in price, people’s fear is divided into two
- The fear of buying, seeing the price drop further and thinking that it will not recover anymore and thus we will lose the investment
- The fear of buying, seeing the price drop and realizing that we bought relatively at a “higher price” than we could have if we had waited.
These two fears lead many people to wait and wait and each time set a lower price at which they will purchase.
We saw this when Bitcoin started its descent from ATH at the beginning of the bear market.
When Bitcoin was in the 60K area many claimed that if the price reached 30K again, they would buy immediately.
Then the BTC price reached 30K, but because of the prolonged declines, people were afraid to enter at that price because of the fears i mentioned earlier.
And so the declines continued to 20K, but even there people were afraid and thought that maybe this was the end of Bitcoin and it would not be able to recover.
The fear and greed index reached to 16 (extreme fear) and the price reached up to 15K.
And people? They didn’t buy, they just said that if the price reached 10K or 12K they would buy for sure.
You understand where I’m going, right?
I am not claiming that everyone is like that, and factually it is not true, because people have bought at every opportunity, whether it is with the help of DCA regardless of the price, or in large purchases with large dips, but unfortunately most people do not.
And it’s a shame when you think about it, because in a bear market when prices fall by 90%+, this is the best time to buy.
As they say, if the taxi driver or the seller at the neighborhood supermarket is talking about buying Bitcoin, it’s time to sell.
I’m still not hearing the talk, so I guess it’s still a good time to buy.
This is not a financial advice. Just sharing my opinion.
That’s when you’re supposed to buy it.
