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@Onyeeze, ideally investors don't want to buy Bitcoin when the price is very high (at the peak) unless the person is just DCAing, but the reason why many people rush in to buy at such high price meanwhile they are not DCAing is because of the fear of missing out, they thought that price will keep surging high and they don't want to miss out from the profit they will get once they buy and see price shooting to the sky. Knowledge is power and for someone that possess a precise knowledge of Bitcoin, they will invest properly and not chase after quick profit knowing how volatile price can be.
While investing in Bitcoin, work with a plan, budget and target. There could be more things to consider but primarily, when you have a planned investment you will not be victim to FOMO or some other challenges, when you have budget for allocation you will know how to invest that will not cause you to lose your sleep seeing that price is not shooting and when you also have a target, you will stand more firm in the direction of your investment. For example,
you target can be to sell at a certain price and no matter what it takes, you will hold till that price.
I otherwise agree with your post to the extent that it seems to be suggesting that ongoingly buying bitcoin has good chances to help to prevent feelings of FOMO. FrequentlyI think that if guys spend 4 years or more consistently buying bitcoin, they are going to end up relieving any sentiments that they did not buy enough. So part of the reason to prepare for up by ongoingly buying is so that you don't feel any panic during those times that bitcoin prices go shooting up.
Sure, bitcoin's price is not guaranteed to go shooting up, but it is not guaranteed not to go shooting up either...and historically we have had a lot of times that bitcoin's price has gone shooting up, and bitcoin's current investment thesis is not any weaker than it has been historically, and even the way bitcoin behaves on the market is not really any different from its history, even though the players (of financial institutions, governments and/or rich people) who are interested in bitcoin are getting BIGGER with the passage of time.
No, I was not considering it as a trade alone, but I was just saying it based on the fact that we also have different classes of investors such as those that could be just short-sighted over their investment and sometimes they could panic when price reached a certain price, their panic could be based on the contemplation whether to sell or keep holding while waiting for the price to surge higher.
Having a target eliminates fear and panic for such people, it makes them stand their ground on what they want (their desire) irrespective of what ever price does, they will hold.
You still seem to be contradicting yourself, since you seem to be claiming that there is some value in having some kind of a target price, and sure I am not completely opposed to the idea, but to me it still seems to be problematic for guys to be thinking in terms of target price prior to their reaching some kind of a accumulation that helps their target price to make sense, but in the abstract if a guy starts to think in terms of target prices while he might still be in his accumulation phase, then you are sounding like a trader.
Even in your case, you have been registered on the forum for less than 3 years, and so do you consider that you have accumulated enough bitcoin to start to employ sales strategies rather than ongoingly considerig buying at least for a couple more years?
Sure the last 3 years have been quite good for anyone accumulating bitcoin, especially if they had been able to front load their investment during mid-to-late 2022 or even into much of 2023 while BTC prices were largely under $30k for most of 2023.
But if you ended up starting out whimpy in your bitcoin investment and not able to front load, it then I really doubt that you are in a good position to be considering selling techniques rather than just continuing to buy through this cycle and perhaps into the next.
Let's say that you had been somewhat able to invest aggressively into bitcoin over the past nearly three years, and let's say for example you had an income of around $5k per month (which is $60k per year), and since
July 2022 you were able to invest around $500 per week into bitcoin, and so then after nearly three of investing, you would have invested $72k and you would have had accumulated about 2.1235 BTC. Surely not a bad place to be, yet I doubt it is a place that is any place close to putting you in a position to be able to start selling at some anticipated target price.
Surely based on the
200-WMA valuation, 2.1235 BTC would give you an ability to withdraw at around $9,600 per year, yet if you wanted to replace your income, you would need around 6x to 7x further rise in the 200-WMA.. which may take a few more years to play out.
Generally with bitcoin we need to accumulate a certain amount and with the passage of time before it starts to make sense to start to sell, unless you are trading rather than investing.
For example, as I continue to accumulate, I could set a target that I would not sell my Bitcoin until the next 8 years and when I backup this target with the right investment strategy, like DCAing respectively to my income capabilities and also making sure it is flexible such that I don't over invest.
O.k... having a timeline for investing makes sense, but it seems different from what you were saying previously about having a price target. Even with my above example, it seems that even if the BTC price were to go up 6x to 10x from here, your accumulated amount of bitcoin might still not be enough to justify selling, even thugh surely any of us may well consider some value in shaving off portions of our bitcoin stash if the BTC price seems to go up too high and too quickly, so for example, even if you were to have a situation that I described above in which you had already accumulated 2.1235 BTC, and if the BTC price were to go up to $500k (6x) within 6 months or maybe $830k (10x) in 9-12 months, then it could be hard to blame you if you ended up selling some portion of your BTC stash, even though you still might not have had reached your accumulation goals in light or the 200-WMA...
It is really difficult to describe what any other guy might do, since the guy has to account for a variety of factors that include how much BTC he had accumulated so far and various other factors related to his finances and psychology.