All Major Resistance Is Broken
Well the moment we have all been anticipating is finally here! The heavy resistance levels between 12K and 14K have been broken and BTC is currently extremely bullish, as the new bull run gets on the way. The trend has been rather bullish throughout 2020 but it is only now that we can officially say that we are in a new bull cycle. To be more specific, we are actually only at the very beginning and 2021 promises to be a crazy ride. As I stated in earlier posts, the idea of a return to prices sub 8K is extremely unlikely. There were and are currently no fundamentals or metrics that support such an idea. A return to 3K is even more unrealistic and I wonder what metrics people are using to gauge the market, in order to come up with such predictions.
A second stock market crash is the only scenario that could negatively affect BTC at this point, apart from some other crazy swan event. Even in the event of a second market crash, I was supporting the idea of a stronger decoupling from traditional markets that would ultimately support Bitcoin. I know a number of people didn't think it possible but we have seen a rather strong decoupling in recent weeks. This post was published 5 days prior to Willy Woo posting similar content on Twitter.
It is actually in the short-term that you want to see the price action decouple because when you zoom out, the correlation begins to fade. So, to be able to see a significant decoupling in the short-term graphs is very encouraging and bullish at the same time.
This is not to say that it is all onwards and upwards from here on out! The previous bull cycle saw BTC go from approximately $600 to 20K in just short of 2 years. This move incorporated 7 or 8 significant flash crashes that ranged from 20% to 44%! Expect this to repeat. My guess has been that we will experience a significant correction at 17K or perhaps even 18K, depending on a number of factors. The fear and greed index is currently spiking in the greed zone and funding rates are shifting. These are all signs that a correction is on the horizon.
Woo Continues To Call This Market Accurately
If you are not that clued up when it comes to on-chain data and analysis then I would suggest following Willy Woo on Twitter. Woo has managed to stay one step ahead through accurately assessing the data he gathers on-chain. Woo builds models that are key to having an edge in the market and is definitely a pioneering force. Like PlanB, Woo often receives criticism prior to being proven correct, time and time again.
There is a lot to be said for on-chain analysis and because of the dynamics involved in blockchain, it is actually a crucial part of effective analysis. Looking to the graph above, it is quite clear that we are currently in the very beginning stages of a new bull cycle. What is important, is not to be moved by the volatility we are about to experience in the BTC price. Remember, we are basically in unchartered waters and extreme volatility is to be expected fairly soon.
Keep you head on, hodl and buy the crashes :)
This is not investment advice, so please do your own research and enjoy the moon ride!