BTC $9,700 here we come?
Well it appears the $12k resistance was too much for BTC in the near term, time to consolidate
Bitcoin made several attempts at breaking $12k and holding.
Unfortunately every single one was rebuffed and prices were sent south.
This finally breakdown likely means we are in a short term correcting.
However, that's not really a bad thing at all.
In fact, most breakouts tend to retest the trendline they broke out from before ultimately going higher.
Which looks something like this:
(Source: https://twitter.com/asmolting/status/1301564475691106307/photo/1)
CME Gap also likely to play a role...
As you may or may not recall from some of my previous posts, there is a CME gap at $9,700 that is yet to fill.
Something like 95% of all CME gaps have filled at this point, meaning there is a high probability that they eventually fill.
Give the current market dynamics, it would not surprise me at all if this current dip ultimately fills that gap.
It would probably also make for a nice clean setup as the gap would be filled and the previous trendline would be retested as support.
Making for a very good spot to go long from...
Will it ultimately play out like that I am not sure, but I would not be surprised one bit if it did...
Also keep in mind that during the 2016-2017 bull market, bitcoin had several major dips along the way.
In fact, if I recall there was one dip that was close to 40% during that bull market.
Which means a dip from $12,400 down to $9,700 would be scary and painful for some, it wouldn't signal the end of the bull market.
Plus, remember the medium term macro view of central bank money printing and debasement of fiat isn't ending any time soon.
In fact, France just announced today a 100 billion euro plan to kick-start it's economy...
Which means...
BTMFD!
Stay informed my friends.
-Doc
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I am wondering how the US Election will play out in all this?? If Biden wins, the US Stock Markets will tank ( at least for awhile) i.e. Higher corporate taxes = lower Earnings for Corporations. Does this mean some might find shelter in plowing money into alternatives like BTC ??
Also as Millineals gain traction with their finances and particularly Baby Boomers dying off and leaving inheritances to them.... well will they be inclined to focus in alt Markets like Crypto and BTC ?? i.e them being Progressive and all that.
Good questions. Bitcoin has been trading somewhat "strangely" as of late. While risky assets (stocks) kept climbing higher these last few weeks, bitcoin has mostly been range bound. Trading more like a store of value. However, when stocks drop (like they did today) bitcoin dropped even more. Which sort of throws the store of value narrative out the window in the short term. So, to answer your question... I am not sure. Bitcoin has traded mostly likely a risky asset in my opinion, which isn't great when stocks tank, with times it trades more like a store of value asset. I think in the long run it will eventually be a store of value but it's not really there yet.
$9700? ha ha ha
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Does that mean you don't think it's going to happen? We hit $10,500 a couple hours ago, $9.7k isn't much further...
Buy the dip indeed! Appreciate all the different perspectives and insights you bring each day.
Thank you, glad you enjoy them. I try to be as informative and interesting as possible while exploring topics that likely impact many of us here.
Thank you for covering this. Quite a number of people are sad about the dip. People like us look forward to it. I bought some btc on ChangeNOW earlier and I still look forward to getting in if I see another entry.
Buying the dip is an hobby 😁
Nicely done! Looking like it may try and fill that $9,700 gap sooner rather than later...
This is very well
At $ 12,000, investors continue to sell