Over the last 24 hours, bitcoin’s price has stabilized around the 8,000 USD mark. I reckon that bitcoin’s decline slowed down as it approached the psychological support range of 5,000 – 7,500 USD, which I believe is bitcoin’s most fundamentally reasonable price.
Judging by chart analysis, nothing radical has happened on the BTC/USD pair in the last 24 hours. The downwards trend on the daily timeframe remains intact. Because of this, it’s perfectly possible that bitcoin will test the low range formed at the beginning of February, which runs from around 6,000 to 7,500 USD:
If we look at the fundamentals, the last 24 hours have seen one very encouraging piece of news. Yesterday, on the 15th of March, Lightning Labs launched a beta version of the Lightning Network; developed for the main Bitcoin network.
This is, of course, excellent news for Bitcoin. It shows us that developers are looking at every possible solution to Bitcoin’s scaling problem.
Nevertheless, I still think that even if the Lightning Network turns out to be a viable solution to the scaling issue, it will need time to prove its worth; specifically, that it can handle bitcoin transactions without any problems. Because of this, I don’t think that bitcoin’s price will immediately go up whenever a solution to the scaling problem appears.
Taking all the above into consideration, I’m going to stick to my position that if you’re thinking of buying bitcoin now, you should only do so if you plan to HODL for a very long time (at least 2-3 years) and you won’t start panicking if the current price undergoes a correction of 30-50%. If a correction does happen, I think the optimum price at which to buy bitcoin is somewhere within the range 5,000 – 7,500 USD.
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