Since the major markets dropped in February 2020 even Bitcoin had roughly the same direction. What I find interesting now, is that the bubbly stocks are still on the rise but Bitcoin left his last wedge to the downside and didn't manage to close above the 99 weekly moving average yesterday.
In my last post about BTC I mentioned Peter Schiff and his view on Bitcoin. I took some time and decided that the fundamentals of crypto currencies in general are too good, that it could just go away. Even when many altcoins will.
What will happen?
Was this just a dead cat bounce? Well, I'd say when Bitcoin leaves the big pitchfork and closes below we could see again 3000$ or even 1000$ like some are predicting.
This scenario sounds very bad for many hodlers.
But
- low price doesn't mean low value, so if you're still liquid and believe in the fundamentals you could be lucky
- Fiat is losing its value right now so the Dollar or Euro price of this asset loses its significance
- You could top up your portfolio with much more crypto
If Bitcoin stays above 6k I remain bullish.
What about the halving?
I think the halving is over hyped and smells like hopium. But my last prediction was 11975$ at the 25th of may (now I expect maximum 9k), so maybe there is really a connection.
Analysts still expect more huge drops in many markets. The fact, that Bitcoin seems to decouple itself from the other markets, could be a good sign. Maybe when "the second big drop" is coming BTC won't follow the other markets and go up. But that's hopium, too.
I think the next month is very important for the whole world in many aspects but also for Bitcoin because then it will be decided if it leaves the big wedge (from 2017 to 2020) to the up- or to the downside.
As I mentioned before now is a time to invest in assets that protect you from hyperinflation, but not only in one (and I don't mean different cryptos). Make sure you have enough food and water. These are the most important assets.
So I just wanted to give a short update and show the lines that I drew to compensate my morning coffee ;)
Not intended to be financial advice.
