Bitcoin, January Effect, 2021 Forecast
Updated
"As January Goes, So Goes the Year" is an old WS adage, and with good reason- in most cases, prices do increase over the rest of the year if there is a positive first month.
"The story follows the price" is another great saying, just as most folks are now calling for GME to trade over $1000 a share, many are also calling for sub 20K prices per Bitcoin.
Given history, and a preference for a buy and hold investing, I think buying
BTCUSD at the close of the month is a great entry.
In ~12 months time, Bitcoin will likely be between 2X-5X today's price.
I remain long Bitcoin.BTCUSD
"The story follows the price" is another great saying, just as most folks are now calling for GME to trade over $1000 a share, many are also calling for sub 20K prices per Bitcoin.
Given history, and a preference for a buy and hold investing, I think buying
BTCUSD at the close of the month is a great entry. In ~12 months time, Bitcoin will likely be between 2X-5X today's price.
I remain long Bitcoin.
BTCUSDNote
One month in, and this basic forecasting method is working as expected. Near the high, Bitcoin traded nearly 2X its Jan closing price. Interestingly, the many investors and traders are extremely bearish after Bitcoin's recent run to 58K and subsequent pullback to the low 40s. I expect this price action will turn out to be consolidation, through either time or continued selling, until some evidence of short term demand/supply levels forms on the weekly or daily charts.
In my view, this is a great time to buy and hold spot.
I remain long Bitcoin.
Note
as forecast by the January effect in 2021, Bitcoin finished the year up. How will January 2022 shape up?
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