A write up by a popular Tweeter on Bitcoin, gold’s greatest nemesis
To this date, I kind of correlate the creation of Google, FB, WhatsApp, Instagram, Netflix, Snapchat, ChatGPT … the list goes on and on … and Bitcoin … as a master-move to brainwash us all.
Why do I include Bitcoin with all these social media names?
Simple, because its creator “disappeared”.
Rant over.
Now on to price analysis. TA is welcome.
Bitcoin flushed through 28k. With so little volume, stops triggering can cause an outsized move (flash crash).
Rumors that SpaceX dumped its holdings (unconfirmed) exacerbated the selling and increased the dump with so few buyers available. SpaceX did write down some of their $BTC holdings due to losses. Companies do this all the time with other assets…
Technically, the 28k level has broken. It has about 24 hours to regain that level or probabilities greatly increase it is headed to 25k.
Bitcoin at 25k is going to be an epic level psychologically. This is where news hit that Black Rock was filing for a spot ETF. The run from 25k to 31k was largely a result of the optimism of its approval.
Should 25k break, 20k becomes the next stop. This is a key level because it represents a point where SVB (Silicon Valley Bank and other regional banks) failed. Money ran from banks and hid in BTC.
Should 20k fail, 52 week (current cycle lows) will likely be tested at $15,700.
12-13K is still very much on the table as a lower target as is 9-10k (max pain). As each level is broken, the next level because magnetic.
My thesis for why Bitcoin could hit 9-10k is an overall risk asset selloff in which the NASDAQ dumps to October 2022 lows or below. That type of massive decline would likely take Bitcoin much lower than $15,700. Aside from that, I do not see a reason for Bitcoin to take out the current 52 week low.
Smart money who continues to believe in the digital gold aspect of Bitcoin will slowly buy at key supports and DCA. Long term I continue to be very bullish on Bitcoin.
Remember that most Bitcoin ‘influencers’ have only been around for a cycle or two. You do not master price action, charts and human psychology in a cycle or two of Bitcoin. You are a toddler when it comes to understanding investing movement. I have now traded for 24 years in multiple assets (day trading and swing trading) and I still learn every day (and make mistakes).
While I can be called a ‘boomer’ when it comes to investing, experience really does count for something when it comes to it. Keep learning and follow the right people….
GL
The Bitcoin decline has ended in my view. What is beginning now is the reversal and I would be buying it aggressively. That is just me of course. Do your own thing. But as long as it does not take another spill (keep a stop in place just in case) then odds certainly favour a recovery and rise from here out from the 26,000 point lows.