BTC/USD Analysis
Updated
The way the masses react to the movement of BTC will never cease to amaze me. If we are up 10% everyone is talking about new ATH and the benefit of such a revolutionary technology. When we are down 10% everyone says BTC is dead and will crash to 1k.
For those who have had exposure to this market over a long period of time, this latest breakdown is just business as usual.
There are a few points I would like to make to bolster the bullish case for Bitcoin.
1. These shakeouts or stop hunts have happened countless times on countless time frames in the BTC market. Never forget that this market is 100% "manipulated". By this, I mean that there are large scale players (whales) that have the ability to influence and dictate price movement. Pretend you're one of them and things start to make more sense. Imagine, the price is sitting on a support zone, you open a massive short position on either a margin account or futures platform, then head over to a few of the spot exchanges you have accounts on and start selling a few BTC to squeeze the price below the support zone. You then sit back and watch the panic selling ensue. When the price hits the next support zone you close positions and buy back what you sold. If you have the funds, time and balls to pull this strategy off its pretty bulletproof.
2. I have heard plenty of people talking about how BTC will fail and cryptocurrencies are just a bubble etc. They seem to overlook the fact that every market in history has been a bubble. The only constant in the world of investing and trading is that people are greedy and will pour money into any market based on speculation. Whether its the railroad market, the gold market, silver market, tech and dotcom market, real-estate/mortgage investment market and now the Crypto market. They all had speculative bubbles and survived.
So if we look at Bitcoin objectively how does it fair? Well today the network hash rate hit a new ATH again, the number of new wallet addresses has been on a steady uptrend and there are more BTC ATM's being opened almost daily. Most any metric used to measure the health or strength of the industry is positive.
3. Put simply, the internet changed the way we transact information. This was a transformative technology for mankind cut out many of the informational intermediaries (libraries, professors, industry experts like real-estate agents) we trusted to give us accurate information. Blockchain and Bitcoin will change the way we transact value. It seems unimaginable something could be this transformative but we have seen revolutionary technologies change the world over and over again. And you either move with progress or get run over by it. So why are banks, institutions and big tech so interested in blockchain and Bitcoin? Because they don't plan on getting run over.
From a technical stand point we are deeply over sold on the daily while sitting on a support/accumulation zone. Also touching the ever beloved .618 fib retracement. This is a good price to enter the market and anything around 7500 is a steal.
The market survived the Mt. Gox ordeal and bounced back from breaking the 6k support last year. Somehow I imagine it will survive this dip as well.
Happy trading and Investing!!
For those who have had exposure to this market over a long period of time, this latest breakdown is just business as usual.
There are a few points I would like to make to bolster the bullish case for Bitcoin.
1. These shakeouts or stop hunts have happened countless times on countless time frames in the BTC market. Never forget that this market is 100% "manipulated". By this, I mean that there are large scale players (whales) that have the ability to influence and dictate price movement. Pretend you're one of them and things start to make more sense. Imagine, the price is sitting on a support zone, you open a massive short position on either a margin account or futures platform, then head over to a few of the spot exchanges you have accounts on and start selling a few BTC to squeeze the price below the support zone. You then sit back and watch the panic selling ensue. When the price hits the next support zone you close positions and buy back what you sold. If you have the funds, time and balls to pull this strategy off its pretty bulletproof.
2. I have heard plenty of people talking about how BTC will fail and cryptocurrencies are just a bubble etc. They seem to overlook the fact that every market in history has been a bubble. The only constant in the world of investing and trading is that people are greedy and will pour money into any market based on speculation. Whether its the railroad market, the gold market, silver market, tech and dotcom market, real-estate/mortgage investment market and now the Crypto market. They all had speculative bubbles and survived.
So if we look at Bitcoin objectively how does it fair? Well today the network hash rate hit a new ATH again, the number of new wallet addresses has been on a steady uptrend and there are more BTC ATM's being opened almost daily. Most any metric used to measure the health or strength of the industry is positive.
3. Put simply, the internet changed the way we transact information. This was a transformative technology for mankind cut out many of the informational intermediaries (libraries, professors, industry experts like real-estate agents) we trusted to give us accurate information. Blockchain and Bitcoin will change the way we transact value. It seems unimaginable something could be this transformative but we have seen revolutionary technologies change the world over and over again. And you either move with progress or get run over by it. So why are banks, institutions and big tech so interested in blockchain and Bitcoin? Because they don't plan on getting run over.
From a technical stand point we are deeply over sold on the daily while sitting on a support/accumulation zone. Also touching the ever beloved .618 fib retracement. This is a good price to enter the market and anything around 7500 is a steal.
The market survived the Mt. Gox ordeal and bounced back from breaking the 6k support last year. Somehow I imagine it will survive this dip as well.
Happy trading and Investing!!
Note
Looks like were building some support in this 8k area!
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