With bitcoin quietly making history this week, with the highest weekly candle close ever, and the ATH (all time high) breached, the masses are starting to take notice. Those who hesitated to buy in at the lower opportunities are now keen to buy in. Which is great because this is just the start of the historic bull run to come.
Sentiment is shifting. Institutional investors are already involved hugely this time around. Now, as price gets noticed, more retail buyers like us will be jumping in. Back in 2017 it was retailers that drove price. This time around it’s institutional investors including mainstream guys, such as Paul Tudor Jones, Twitter’s Square, and now Paypal.
The bitcoin world is now awaiting a proper strong break of the ATH. At present we are still hovering just below that glass ceiling. All year bitcoin owners have been pulling their bitcoin off exchanges, which is a major bullish fundamental indicator. It implies that less bitcoin will be available for trading, and so price will rise.
Owners or HODLERS do not want to trade or sell now. Almost everyone who ever bought bitcoin is now in profit as this ATH. If you have come this far, and still hodl any bitcoin, then now is the time to keep hodling. Now comes the real profit. So just have strong hands and keep hodling for another one year until around the end of 2021, or when price is around $150 000.
Don’t try to day trade all your bitcoin. Most day traders lose money. So if you must then try to day trade a small portion of your entire potential. Rather just accumulate. Trade the multi year cycles. Trading is not bad but most of us take losses trying it. Keep it simple and ride the trend. That’s the easy and simple way to have a peaceful life and know that your bitcoin is going to climb.
If and when you want to sell, say in a year from now, then use the DCA technique. Dollar cost averaging can be used when you buy in as well as when you sell out of bitcoin. Split your entries and exits over some stretch of time so that you ensure good profit. No one can know exactly where the top is.
Patience is an asset in this game. Play the long game and keep it simple. Let the math and the code do the work. When all else economically is crumbling, this can still be a positive year ahead for bitcoin and cryptocurrency hodlers.
When you play the long game, it’s fine to look at the daily and weekly charts. Also glassnode.com is a great website with data and charts, besides price. For example the stock-to-flow chart, made famous by PlanB. According to that chart, price should reach around $100 000 easily by the next peak. At least. That is a conservative target for this cycle, before the next halving in four years, in 2024.
If you are young and can think even more long term, then you could hodl until the next halving and beyond, like until 2026. The you will probably see bitcoin price at around $1 million. This is just my opinion, not financial advice. Keep an eye on the on-chain analysis tools and watch the metrics, like bitcoin market cap, say compared to gold, for example.
If bitcoin ever equals gold’s market cap then price will probably easily be around $500 000. And if governments ever buy into bitcoin, like institutions are now, then price will go even more crazy than we can imagine right now. These are just possibilities. Bitcoin is only becoming more and more attractive to more people.
When bitcoin reaches a price of $100 000, then we will see a bitcoin market cap on par with Apple or any of the top stocks in the world. No other assets have the power or potential of bitcoin. And none have ever had this opportunity or potential. Those of us involved in bitcoin will be making history. It has already happened with the past three halvings, and the next bull cycle is here and now. It has arrived. Here comes the part we have been waiting for. Now for the profit. I hope you are on board for the ride to the moon.
