Hi there beautiful person!
It has been an interesting week with some incredible money printing and movement in the markets, along with slow movement in BTC.
There is a lot of speculation around now, and I thought I could throw my 2-cent speculation into the bucket as well.
If you have the time and interest, I would appreciate if you read the whole article and pressed a like if you agree.
If not, then have a go at the summary and have a great week ahead of you and be safe!
Short summary:
Market in Post 2008 crash has not been recuperated and we still have a broken system. This combined that covid-19 is hitting/affecting all markets globally, dictate that this is nowhere near the 2008 scenario and incentives and strategies in that period will not be as effective in 2020 and 2021.
List of content:
First is small changes to the chart:
This is not the same situation like in 2008, rethink your strategy
Many people out there are comparing this situation to the one we experienced in 2008, and are creating their strategies accordingly.
That might be a mistake that will cost them dearly and possibly miss out on some great return.
In 2008 it was "mainly" the banks that were hit, cause of bad house mortgage and liquidity. This scenario was rather local and did not hit the world on a global scale, an especially did not span on a lot of other market levels.
Although it did affect globally to some extent, it was more or less due to connection with US market and dollar that was the reason and not the reason itself.
the solution back then in 2008 was to print a lot of money and put them into banks, which worked to most extend; but did not fix it.
Post 2008, aka in 2020, we are still left with a "broken" system and a market that did not fully recuperate from previous crash; whilst the value in stock market is inflated, just waiting for a needle.
This time around, the catalyst/needle covid-19, has hit globally and equally across multiple market areas. This effect is therefore many magnitude greater because of snowball effects.
List of a few: Unemployment is up, number of companies is falling, uncertainty and fear is increasing in people, world wide Currencies will be devalued due to overprinting, consumer market is crashing, gold and copper value is short term lowered and miners cant afford to keep business running, etc
This time period we are in now will have different waves/effects, and value of different assets will react in those different waves.
Second wave is coming
First wave hit China first with total shut down of many important factories and airports, which did it tolls on the financial market and homes in China.
First Wave continued internationally and went towards Europe, and continued to US.
Second wave is now in beginning in China, where we will see the after-effect of first wave. This will further decrease the overall stock market and other assets (than in first wave) will start to gain momentum.
BTC can actually retest 3500 EURO area
It is because of this second wave that I believe that BTC will see a further decrease and possibly retest the 3000 Euro. One reason is that investors will need to sell off more to cover their losses in other assets.
BTC price will increase.
The retesting of 3500 EURO will not be a long lived level, because investors will want to buy into more BTC to diversify when the "real" after effect of helicopter money takes into effect.
BTC will probably stay within the triangle for some time, when it starts to increase in price; so watch for that 9000 resistant.
When? Somewhere around end of second wave, and that might be around end of summer or early fall.
Shortly after BTC is increasing it will kick off a new Alt-coin race.
Thank you very much for reading through all of this wall of text. Really hope you found it interesting and useful.
Please, stay safe and have a great week ahead of you.
It has been an interesting week with some incredible money printing and movement in the markets, along with slow movement in BTC.
There is a lot of speculation around now, and I thought I could throw my 2-cent speculation into the bucket as well.
If you have the time and interest, I would appreciate if you read the whole article and pressed a like if you agree.
If not, then have a go at the summary and have a great week ahead of you and be safe!
Short summary:
Market in Post 2008 crash has not been recuperated and we still have a broken system. This combined that covid-19 is hitting/affecting all markets globally, dictate that this is nowhere near the 2008 scenario and incentives and strategies in that period will not be as effective in 2020 and 2021.
List of content:
- This is not the same situation like in 2008, rethink your strategy
- Second wave is coming
- BTC can actually retest 3500 EURO area
- BTC price will increase.
First is small changes to the chart:
- Moved the resistant and support lines to better positions
- Changed the view to weekly to see the overall trend better
- Added the triangle from previous post.
This is not the same situation like in 2008, rethink your strategy
Many people out there are comparing this situation to the one we experienced in 2008, and are creating their strategies accordingly.
That might be a mistake that will cost them dearly and possibly miss out on some great return.
In 2008 it was "mainly" the banks that were hit, cause of bad house mortgage and liquidity. This scenario was rather local and did not hit the world on a global scale, an especially did not span on a lot of other market levels.
Although it did affect globally to some extent, it was more or less due to connection with US market and dollar that was the reason and not the reason itself.
the solution back then in 2008 was to print a lot of money and put them into banks, which worked to most extend; but did not fix it.
Post 2008, aka in 2020, we are still left with a "broken" system and a market that did not fully recuperate from previous crash; whilst the value in stock market is inflated, just waiting for a needle.
This time around, the catalyst/needle covid-19, has hit globally and equally across multiple market areas. This effect is therefore many magnitude greater because of snowball effects.
List of a few: Unemployment is up, number of companies is falling, uncertainty and fear is increasing in people, world wide Currencies will be devalued due to overprinting, consumer market is crashing, gold and copper value is short term lowered and miners cant afford to keep business running, etc
This time period we are in now will have different waves/effects, and value of different assets will react in those different waves.
Second wave is coming
First wave hit China first with total shut down of many important factories and airports, which did it tolls on the financial market and homes in China.
First Wave continued internationally and went towards Europe, and continued to US.
Second wave is now in beginning in China, where we will see the after-effect of first wave. This will further decrease the overall stock market and other assets (than in first wave) will start to gain momentum.
BTC can actually retest 3500 EURO area
It is because of this second wave that I believe that BTC will see a further decrease and possibly retest the 3000 Euro. One reason is that investors will need to sell off more to cover their losses in other assets.
BTC price will increase.
The retesting of 3500 EURO will not be a long lived level, because investors will want to buy into more BTC to diversify when the "real" after effect of helicopter money takes into effect.
BTC will probably stay within the triangle for some time, when it starts to increase in price; so watch for that 9000 resistant.
When? Somewhere around end of second wave, and that might be around end of summer or early fall.
Shortly after BTC is increasing it will kick off a new Alt-coin race.
Thank you very much for reading through all of this wall of text. Really hope you found it interesting and useful.
Please, stay safe and have a great week ahead of you.
