Never ignore the logarithmic chart to see the future
Updated
Many pessimists talk of the 2017 pump as if it was the only wave of euphoria Bitcoin ever experienced and that now the "bubble has burst" Bitcoin is finished. I strongly disagree. BTC has pumped and corrected four times before and this is a completely normal (and actually shockingly predictable) repeating market cycle, just like the global boom and bust market cycle we all exist in - i.e. we are due another global recession because the system is designed for it to happen.
Fundamentally over the last ten years Bitcoin is going up and up and up.
The Bitcoin all time logarithmic chart proves as such, with any corrections all part of the clear upward direction. I can only show the last four years of this here, so you will need to look up the all time version going back to Bitcoin's inception in 2009.
(Note I've put "around $2500" instead of our current possible bottom of "around $3500", since I personally expect us to go lower.)
In any case, it is no secret that institutional money has been flowing into the space over recent months (mostly Over The Counter, so as not to push up the price, yet), and it is they that will fuel the next pump. Last time I checked they know exactly how to play 90% of people for fools to maximise their profits. They will ensure those fools sell low and FOMO in to buy high, while they (the institutions) are doing the exact opposite and reaping huge rewards. To doubt Bitcoin now, is to doubt the greed of the large scale financial institutions.
2011 pump - fueled by early adopters
2013 pump - fueled by early adopters
2013 pump - fueled by early adopters
2017 pump - fueled initially by early adopters, then everyday investors FOMOing in
Next pump - fueled initially by institutional money, then everyday investors FOMOing in
It's also worth nothing that every previous pump has been fueled by BTC... if one of the other front runner altcoins reaches fruition, they could trigger the next crypto pump. i.e. if XRP (despite being in bed with the banks and hated by many in crypto for it) gets real adoption, its value will rocket and BTC will duly follow it up, along with ETH, ADA, EOS, LTC, XLM, TRX etc. The luckiest thing for smart traders is that all cryptocurrencies are still heavily linked to each other in trading movement/value, so even if most day traders are only looking for a get rich quick scheme, they only need any one altcoin project to succeed and all will pump HARD.
The only reason many want more fiat is you can't yet realistically run your life or count your riches with crypto. You can be rich in AUD or JPY, but you can't really be rich in BTC - only its equivalent spending value in AUD, JPY etc. Once the winning crypto coin becomes widely accepted for spending in shops and online, crypto traders/investors will begin to care less about fiat wealth and more about wealth in that specific crypto coin.
There is a global appetite for peer-to-peer transactions and we are effectively all still early adopters. Big players (like Facebook/Whatsapp) are soon to launch their own cryptocurrency and it will be interesting to see if they can take advantage of their market position to introduce (arguably by stealth) crypto to the masses.
If nothing else, look up the "Bitcoin all time logarithmic chart" and think about where you think it is going next. It should be the most exciting thing you look at all day.
Please give me a thumbs up and follow me if you found my analysis interesting.
This is for educational purposes only and not a recommendation to buy or sell.
Fundamentally over the last ten years Bitcoin is going up and up and up.
The Bitcoin all time logarithmic chart proves as such, with any corrections all part of the clear upward direction. I can only show the last four years of this here, so you will need to look up the all time version going back to Bitcoin's inception in 2009.
- In 2011 Bitcoin went from $0.06 (peaked at $29.60) before settling around $5 = an increase of 8233%
- In early 2013 Bitcoin went from $13.50 (peaked at $230) before settling around $100 = an increase of 640%
- In late 2013 Bitcoin went from $125 (peaked at $1147) before settling around $250 = an increase of 100%
- In late 2017 Bitcoin went from $1000 (peaked at $19086) before settling around $2500 = an increase of 150%
(Note I've put "around $2500" instead of our current possible bottom of "around $3500", since I personally expect us to go lower.)
In any case, it is no secret that institutional money has been flowing into the space over recent months (mostly Over The Counter, so as not to push up the price, yet), and it is they that will fuel the next pump. Last time I checked they know exactly how to play 90% of people for fools to maximise their profits. They will ensure those fools sell low and FOMO in to buy high, while they (the institutions) are doing the exact opposite and reaping huge rewards. To doubt Bitcoin now, is to doubt the greed of the large scale financial institutions.
2011 pump - fueled by early adopters
2013 pump - fueled by early adopters
2013 pump - fueled by early adopters
2017 pump - fueled initially by early adopters, then everyday investors FOMOing in
Next pump - fueled initially by institutional money, then everyday investors FOMOing in
It's also worth nothing that every previous pump has been fueled by BTC... if one of the other front runner altcoins reaches fruition, they could trigger the next crypto pump. i.e. if XRP (despite being in bed with the banks and hated by many in crypto for it) gets real adoption, its value will rocket and BTC will duly follow it up, along with ETH, ADA, EOS, LTC, XLM, TRX etc. The luckiest thing for smart traders is that all cryptocurrencies are still heavily linked to each other in trading movement/value, so even if most day traders are only looking for a get rich quick scheme, they only need any one altcoin project to succeed and all will pump HARD.
The only reason many want more fiat is you can't yet realistically run your life or count your riches with crypto. You can be rich in AUD or JPY, but you can't really be rich in BTC - only its equivalent spending value in AUD, JPY etc. Once the winning crypto coin becomes widely accepted for spending in shops and online, crypto traders/investors will begin to care less about fiat wealth and more about wealth in that specific crypto coin.
There is a global appetite for peer-to-peer transactions and we are effectively all still early adopters. Big players (like Facebook/Whatsapp) are soon to launch their own cryptocurrency and it will be interesting to see if they can take advantage of their market position to introduce (arguably by stealth) crypto to the masses.
If nothing else, look up the "Bitcoin all time logarithmic chart" and think about where you think it is going next. It should be the most exciting thing you look at all day.
Please give me a thumbs up and follow me if you found my analysis interesting.
This is for educational purposes only and not a recommendation to buy or sell.
Note
A chart that just keeps giving... though how strong will resistance be now we have switched once again to the downside?
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