Buy Bitcoin At $35k; Buy Some More If It Falls Further

While Bitcoin isn't likely to be revisiting $60,000 anytime soon, a buy in the $35k makes sense

Last Updated July 23rd 2021
7 Min Read

Bitcoin, the king of cryptocurrencies, is a highly volatile digital asset with a track record of several boom and bust cycles. Unfortunately, May 2021 was not a favourable month for the crypto market. Several cryptocurrency prices plunged after Tesla CEO Elon Musk’s tweet and China’s crypto crackdown. 

Even though Bitcoin, Ethereum, and Dogecoin rose significantly after the crash, Bitcoin is now stalling at a resistance of $35,000. The dip and resistance level has left investors split into two; some are rushing to sell off to save losses, while others are faithfully holding their stake with hope for the future. Let us see if this is the right time to buy Bitcoin while it is at $35K. 

Why Is It Good To Buy/Hold Bitcoin At $35K?

Bitcoin began 2021 with a splendid rally and surged higher, hitting an all-time peak of $64,863.10 in April. But within just six weeks between April and May, BTC plummeted from this record high to less than half its value. Over the past few weeks, it has been stalling around a resistance level of $32 - $35K. 

Crypto enthusiast Mark Cuban termed the May price crash as the Great Unwind, as cryptocurrencies were falling in value following an unwinding of the market after Bitcoin’s fall. However, experts and investors suggest that rather than selling off, this is a fresh opportunity to buy more when the price is down and hold until the next bull run. Holding BTC for a long time has reaped huge profits for several investors in the past owing to a sharp jump in value. 

Even though a 50% dip in value seems highly drastic, the significant point is that Bitcoin is still trading 300% higher than its value in 2020 and over 30% higher than the beginning of 2021. Analysts also predict that there are chances for Bitcoin’s value to drop further. But, the token is also experiencing a high adoption rate which will further boost its value after the bear market. 

Today, major retail players like Starbucks, Amazon, Expedia, etc., have started accepting payments in Bitcoin through third-party apps. Moreover, the South American nation of El Salvador has recently announced that it would be using Bitcoin as legal tender moving forward. Additionally, over seven countries are now underway into making BTC their official currency. 

As the methods for sending, receiving, and storing Bitcoin increases each passing day, the number of active wallets on the network is also increasing. This can be seen as a vital sign of a growing financial ecosystem that Bitcoin will initiate in the future. 

Therefore, buying Bitcoin when it is trading at $35K or below could likely be a great investment strategy.

Bitcoin At $35K 

Bitcoin is showing significant signs of exhaustion after reaching a resistance level of $35,000 earlier this week. As of writing, the token has again shown a decline and trades at $32,622.2. Therefore, Bitcoin is continuing its ups and down without providing any clear sign of where the cryptocurrency is heading next. 

But even in this ongoing stagnation phase, experts say that if you are well-equipped with the technicalities of blockchain technology, then buying and holding Bitcoin could be the best thing to do now. 

Further, Bitcoin’s corporate adoption continued growing after Palantir Technologies, backed by Peter Thiel, started accepting Bitcoin as a payment method from its customers. In addition, the CFO, Dave Glazer, said that investing in Bitcoin as a treasury-reverse asset is definitely 'on the table.’ 

However, you lose money if you decide to sell BTC for less than you bought it for. This is known as crystallizing your losses. While on the other hand, you won't technically lose any money if you are holding it when the price of Bitcoin is low or even buying more at the time. 

Further, experts see Bitcoin price to rally higher to over $75,909 by the end of this year if it continues to increase its adoption rates.

Read Also: Factors That Could Significantly Influence Bitcoin's Price 

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The Best Opportunity to Buy Bitcoin 

In this bearish scenario, Bitcoin is hypothetically entering into what is commonly known as the 'crypto winter.’ This means heavy losses would be followed by a sustained period of stagnation. But when the same happened between 2018 and early 2020, the crypto space was able to develop more and mature significantly. 

The resistance phase could be one of the best opportunities to buy Bitcoin because of its ever-expanding popularity and network. Bitcoin still remains the world’s most popular and highly valued digital currency in terms of market capitalization. This solely appeals to a wide range of investors and institutions. Furthermore, thanks to its worldwide acceptance as an alternative asset in the financial world, more companies and institutions see BTC as a venture capital-backed asset. 

The crypto analytics site Glassnode reports that holders and institutional players are utilizing this opportunity to double their investments in Bitcoin, highlighting their belief in the future of the asset class. Some even argue that the limited supply of Bitcoin makes it a safe hedge against the rising inflation of the global economy. 

Even though prices are dropping drastically, adoption rates are increasing rapidly on the other side of the fence. The number of investors purchasing Bitcoin via platforms such as PayPal and Cash App has been steadily growing. 

Institutions like MicroStrategy found this the best opportunity to buy more Bitcoins. The team announced that it purchased an additional 13,005 Bitcoins for around $489 million in cash at an average price of $37,617 per Bitcoin.

Therefore, since the future outlook of Bitcoin seems highly optimistic, the stagnation phase could likely be an opportunity for investors to double their investments. But, it certainly depends on individuals and their highly researched investment strategies.

Check Out: Bitcoin Trends

Buying Bitcoin At $35k - According To Experts

Those in favour of Bitcoin often say that it has the potential to survive any economic or infrastructure collapse. Here’s what experts think about Bitcoin's stagnation phase at $35K. 

The expert trader Michaël van de Poppe opines that Bitcoin needed a clean breakout at $35,500 to cement the continuation of bullish action. He says that the potential upside limit of such a circumstance could be much higher than expected. 

He says, “If $35,500 breaks, I think we are going to get a run towards even $39,000. If that cracks, I think we’re going to have a retest around the $50,000 level, and momentum starts to kick back into the markets very soon.”

The chief technology officer at cryptocurrency exchange Bitfinex, Paolo Ardoino, when asked about Bitcoin’s future potential, said, “Meanwhile, the backdrop of increasing institutional investment and retail adoption continues to gather strength, representing powerful facts on the ground. Big financial institutions and traditional fintech have recognized that Bitcoin can’t be ignored.”

Also, Avinash Shekhar, the Co-CEO of ZebPay, told Economic Times that even though the Bitcoin fall may have taken all by surprise, it is typical for such volatile assets after a huge rally. He added, “Such corrections are mainly due to short-term traders taking profits. Long-term value investors might call these lower prices a buying opportunity, as MicroStrategy just did. Technical analysts would call this a test of the support level around $40,000,”

Moreover, Anthony Pompliano, the co-founder of cryptocurrency hedge fund Morgan Creek Digital Assets and a Bitcoin investor, also supports holding Bitcoin for the long term. He further adds that it is a good strategy even when the price stagnates since BTC has a limited supply. As the demand increases, the price will also eventually rise, ensuring good returns. 

The Bottomline 

The rapid pace at which institutions and users are adopting Bitcoin is an indicator that the value of Bitcoin isn’t going to go down any time soon. Of course, Bitcoin is neither a get-rich-quick scheme nor does it claim to make you an overnight millionaire. But it is backed up by several huge investors, institutions, and experts in the crypto market. 

While entering the crypto investment sector, it is crucial to have a thorough knowledge of each asset’s technology and researched its market value to make firm decisions. 

In the above case, according to popular crypto experts and considering Bitcoin’s increasing adoption, buying Bitcoin at $35K, or holding it could be a profitable investment strategy for ensuring good return in the future.

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