Many people wonder if now is the right time to buy Bitcoin, or when they should invest in cryptocurrency. Fact is, although there are some general price trends, no one can accurately tell you when the best time is to buy cryptocurrency.
There are two main factors that you can watch when trying to decide if now is a good time to buy crypto: seasonality, and market cycles.
Historically, cryptocurrencies usually rally in the months of February and March, and at the end of December. Although it might have been a complete coincidence that this pattern emerged over the course of the years, some people think that these rallies might be related to the tax season.
Many people call this phenomena “alt season”, since its especially the altcoins that generate very high returns during these periods of time.
“Altseason” is a time period where the prices of altcoins skyrocket.
The second and probably more important factor is to watch the market cycle. It’s obviously better to buy cryptocurrencies at a 80% discount from their all-time high than it is to buy at the top during a frenzy. However, often you might not get a chance to buy at rock bottom prices. Judging by past price actions, once the cryptocurrency market enters a new bull market then it often doesn’t stop until the price of most coins has increased by at least a factor of ten.
Therefore, if you didn’t manage to catch the bottom of the bear market, a good moment to scale into Bitcoin and other cryptocurrencies is every time there is a “dip” in the price. Bitcoin often dips 10-15% during rallies before continuing to move higher up so that’s something that you can leverage in your investment strategy.