What’s Next for Bitcoin – Is Bitcoin Price Bottom Close?

By ssaurel | In Bitcoin We Trust | 18 Jun 2021

FUD (Fear, Uncertainty, and Doubt) is slowly starting to fade in the Bitcoin world. Sure, you can still read about Bitcoin mining farms being shut down in Sichuan, China, but the market has already moved on.

The formation of the Bitcoin Mining Council has helped regain control of the narrative regarding the long-term environmental impact of Bitcoin.

Investors needed reassurance, and this initiative shows that the topic is being taken very seriously by people like Michael J. Saylor who have a strong interest in Bitcoin being considered green.

Rather than systematic opposition and sterile anti-Bitcoin debates, we need to be constructive to end the great hypocrisy on the subject. Bitcoin is already far ahead of most major economies and other global financial systems in terms of renewable energy use. The great hypocrisy must end.

Fear is slowly dissipating in the Bitcoin world

As the FUD gradually disappears, investors can once again focus on the fundamentals of Bitcoin.

De facto, market sentiment gradually shifts from extreme fear to simple fear:

Bitcoin Fear & Greed Index Evolution since March 2021

In the coming weeks, the situation will continue to improve. That is a certainty.

The fact that a country like El Salvador is making Bitcoin an official currency is a great event that will impact positively the price of Bitcoin in the coming month. Other countries elsewhere in the world will follow this initiative which will allow them to no longer be slaves to the totally unfair American dollar system.

Those who constantly criticize Bitcoin for not being used will have to move on. For now, they explain that Bitcoin is only used by a small country of just over 6 million people. Nothing significant to listen to them. They can rest assured that other countries with much larger populations will follow in the future. One wonders what they will still find objectionable at that time.

Bitcoin is also evolving in terms of its source code with the validated activation of the Taproot evolution. A strong sign sent by the Bitcoin developer community.

Despite the good news, the price of Bitcoin is moving sideways at the moment

Despite all this good news, many investors are getting impatient with the fact that the price of Bitcoin has been moving sideways for several days now. While many were hoping for a quick return above $40K and then $50K, they will have to be patient.

The current structure suggests that the current situation of the Bitcoin price stuck in a narrowing range between $36K and $38K may last for a while:

Bitcoin price evolution with supports and resistances to watch by @ssaurel

The good news here is that if the consolidation phase continues, the price of Bitcoin is approaching its bottom. Since the beginning of June 2021, we have had higher lows and lower highs with every move. During this consolidation phase, those with a long-term view of Bitcoin are taking advantage of this to accumulate more.

This is the case of Paul Tudor Jones, who recently explained that he had gone from allocating 1% of his portfolio to Bitcoin to 5%. For him, buying Bitcoin is a no-brainer, and he explains why via 5 powerful words: Math, Reliable, Consistent, Honest, and 100% Certain.

Patience and confidence are the watchwords during this consolidation phase which should allow you to accumulate more BTC

Those who want to profit fully in Bitcoin would do well to follow the strategy of Paul Tudor Jones in my opinion. The same Paul Tudor Jones displayed the same confidence in Bitcoin in May 2020 when he announced that he was opting for Bitcoin instead of gold in the face of the great monetary inflation that was looming.

At the time, the price of Bitcoin was around $8K, and many doubted its ability to give us the bullish rally we have been experiencing since October 2020. Paul Tudor Jones had no such doubts, and he has been enjoying it ever since. It will be the same in the coming months in my opinion.

For the time being, the price of Bitcoin is around $37K. Nothing to be alarmed about, and we need to hold the $36K support in the coming hours for the current structure to be confirmed. If a bounce is seen around $36K, it will be in the direction of a near bottom for the Bitcoin price.

The Bitcoin price will then need to break back above $38.6K, before moving on to tackle the important resistance of the $41K - $42K area. Once Bitcoin passes this resistance, anything is possible with a rapid rise to $46K and then $48K.

We are not there yet, but this is my preferred scenario for the coming weeks. A Death Cross is coming in the early summer of 2020. Many fear it, but I don't think it should be such a big deal in the current situation.

Final Thoughts

The worst of the crash has passed, and those who continue to take advantage of the current situation by being patient will be rewarded in the months to come. As always with the Bitcoin price in the short term, no guarantees. Just a personal feeling from my analysis of the situation.

It's up to you to judge what you want to do as always. Stay strong, stay a Bitcoin HODLer.

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