Should I Buy Bitcoin at $25,000?
As we head into the final days of summer, we could be on the verge of a breakout for Bitcoin (CRYPTO: BTC). On Aug. 14, Bitcoin briefly traded above $25,000 for the first time since June. Understandably, this has the Bitcoin bulls excited because all the talk about "buying the dip" throughout the summer looks like it is actually working. After nearly two months of testing the $20,000 resistance level, it now looks like Bitcoin could be ready for its next big test: $25,000.
So should you buy Bitcoin at $25,000? There are two key factors to keep in mind here. One is the overall psychology of the market. The other is the presence of key catalysts that could be lining up for sustained, long-term growth in the price of Bitcoin. Let's take a closer look at both of these two key factors.
Crypto markets, much more so than equity markets, are based on a mix of gut feelings, emotions, and instincts. Sometimes you can just "feel" that the market is headed higher. Combine all this, and you arrive at what the British economist John Maynard Keynes famously described as "animal spirits." This was his way of explaining how markets moved up and down during times of uncertainty. It may be tempting to describe the markets in rational, data-driven ways, but when it comes down to it, human emotions matter. And right now, the animal spirits of the bulls are starting to reemerge after briefly hibernating during the so-called "crypto winter" in recent months.
Source Fool.com
