Bitcoin - A history of parabolic price movements
Yesterday, I published an idea that perhaps BTCUSD would be heading for a deeper correction. Today, the market resoundingly rejected that hypothesis.
If we have a look at the history of BTCUSD, on this weekly chart on the logarithmic scale, we can identify two distinct cycles. It appears that looking at BTCUSD on the linear scale is where we misunderstand it. In fact, at this rate of growth, we may need to look at the log of log for Bitcoin.
Lots of respect from me. The only thing that could potentially break this cycle is when there is simply not enough new money pouring in to support the growth because at that point:
1. People who have been holding are extremely rich, but only in bitcoin. They may not have enough money themselves to buy significant amount of the daily volume.
2. There will simply not be enough free money in the world for investment.
Maybe this will be the day when 10bn is required to maintain the current cycle.
If we have a look at the history of BTCUSD, on this weekly chart on the logarithmic scale, we can identify two distinct cycles. It appears that looking at BTCUSD on the linear scale is where we misunderstand it. In fact, at this rate of growth, we may need to look at the log of log for Bitcoin.
Lots of respect from me. The only thing that could potentially break this cycle is when there is simply not enough new money pouring in to support the growth because at that point:
1. People who have been holding are extremely rich, but only in bitcoin. They may not have enough money themselves to buy significant amount of the daily volume.
2. There will simply not be enough free money in the world for investment.
Maybe this will be the day when 10bn is required to maintain the current cycle.
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