We often look at the little picture and in the end we may panic and lose it all !
Look at chart, and you'll understand what I'm talking about. After each up we may see down. Just like in life, ups and downs. And you know what big investors do now ? They buy the dip to sell after. And even if they buy now and see that the price keep going down, they just hold until it's up again. It's not an investment advice, but a clear observation from the chart. So, we may have a support level where investors didn't sell, but now they seem to be selling. A lot of them selling at the same time. But they will buy again in the dip. Some of them may consider $20k is the dip, so of them wait till $10k to buy a lot.
Let's compare between the previous two top. About 6 months between them. Both in about $60k. That means during those 6 months they kept dumping, till the point where most of them start buying a lot. And pushed the price to $60k again after dumping it to the half and that's about $30k. Most of them saw the dip there. Could we see the same scenario ? Why not. That's why to not lose it all, it's better to hold and sell at least closer to that $60k again. That's of course if we don't need that money too much. So, this post is for bitcoin holders. But if you compare the price of other crypto with the same way, you'll see them similar.
Let's look at the other period of time. I see the lower price we take, the smaller is time to wait for the price to come back where it was. So, I'm taking the period of the end of 2021 and March 2022. It was $50k and it went back to $47k. It's kind of rule we can extract from this. The shorter the gap, the lower is the top. It's kind of logic. Short terms bring less than long terms bring. Because while the dip in the first situation went to almost half. Here we see the price went to about $36k and that's the dip. So, it didn't lose 50%, but about 30%, maybe. That's why most of the investors seem to trade in long term. At least 6 months. And if we talk about those who trade in a period of years, we see them doing so well.
We should also not forget to check the marketcap. Even with the price being low, the money seem to be there.
Also, I would like to compare between the price when we had the same marketcap in 2020 and now. So, when it was about $356B the price was about $20k. And now the price is the same. Here we may come to conclusion that the price is related directly to marketcap. That's why I don't see any reason for the FUD. I understand if we were now at the same marketcap, but the price went much lower, but it's not the case.
Anyway, that's my analysis. That's how I see things. You can tell in the comments, how you analyze the market usually.
I believe this analysis is quite accurate. Thanks for putting this together. Good post!
Glad you like it. :)
The value of Bitcoin as with crypto in general ( and stocks) is that the value is an illusion that is purposely manipulated by those who have most. They create these cycles where they will create the FOMO, then destroy what they built up (kicking the legs of the ladder to make it topple) and then scoop up the desired amount as they prepare for their next harvest of bag holders.
I did an article some time back where I reported in the case of Bitcoin at that time the largest holder was the U.S, government due to seizure laws. I've also said that as long as the barometer for value is in a product that so called elite can manufacture out of thin air (fiat) that they will always by default hold the control for the growth or destruction of any asset tied to that valuation.
Given that those who rule through the fiat illusion are pushing for us to own nothing in a very short time, and all money to be issued from their own digital means (here in the U.S. they are saying the (not so) Federal Reserve will be the holders of our wallets), they will control every action of every slave, I mean citizen wink wink.
That is the big picture and as we watch the purposeful destruction of the economies in the world as they seek to escape punishment for the amount of leeching they have done to their citizens, the vast amounts of theft and money laundering they care little for the pain they need to force onto us.
Note here in the U.S. one is now a likely terrorist if one believe they have constitutional rights or questions the so called official narrative that we are growingly told must be the science or else.
The only way out of this mess is if those who can see where we have been, where we are and where we are headed can come to a new illusion on value, one that bans any insertion of value from those who create the fiat.
In the case of BTC, it seems that the price is cyclical; For this reason, it is necessary to see the big picture and not just the graph in short periods.
BTC just broke the $20,000 support and touched the $18,000 zone ($18,742.50) so it will be there for a while while the alarmed ones sell their BTC and the patient whales get more and more.
After this, the redemption of the BTC will come as it has happened in the past.
Yeah, I also think the same.