In July 2020, we finally broke out of that nasty bear trend going back to the high from December 2017. We retested that trend in August again (which is a healthy move), but have since moved and stayed above it. That was painful and took soooo long! Let's please just skip that dreadful time of life next time around. feels so good! Go ahead and take a moment to appreciate those who have been able to hold on for these last few years of the journey.
There's a chance we stay in a long term equilibrium pattern on the monthly, but we are close to breaking a big resistance of $13,868 and if we do, then the all time high of $19,891 is in sights. After that, it's time to buckle up. With all the positive news and infrastructure growth in this space, things are looking bright . Yes, I expect some big drops along the way, in particular after we break the all time high, but long term, things are looking positive.
We will continue to see companies and other institutions pouring money into Bitcoin . In the grand scheme of things, it is a gradual inflow right now, but this trend will continue to gain momentum. There is quite a bit of recent news on this matter:
- Grayscale is currently purchasing 77% worth of all the newly mined Bitcoin supply, an amount that has increased every quarter this year. I can't wait for a few more halvings. Remind me again what happens to Bitcoin price when the supply gets cut in half, and then half again, and literally 1 company is buying more than is being create. The word UP is coming to my mind for some reason.
- Companies like MicroStrategy ($425 Million) and Square ($50 Million) are choosing to hold Bitcoin as an asset over holding cash. Every few days now we are hearing about more companies choosing this path.
- Paypal is bringing Bitcoin exposure to it's 350 Million customers world wide to be able to Buy/Sell/Hold and make purchases with Bitcoin . Regardless how many new customers this may bring in (hopefully the fees will be lowered once there is more competition) the effect of incorporating bitcoin into PayPal's wallet is pretty major.
- Central Banks are taking a serious look into Digital Currencies. 1 out of 5 central banks have said they plan to incorporate digital currencies within 1-3 years. I don't imagine the United States has a lot of incentive to move forward quickly with this, given the Dollar being the dominant world currency, but it's going to happen eventually.
- Banks have been given permission by the Office of the Comptroller of the Currency to begin holding digital currencies. I imagine this is to allow for the digital dollar once this becomes the norm, but it also allows them to hold Bitcoin . Do you remember when banks like JPMorgan called Bitcoin a fraud just 3 years ago but now are predicting a $30,000 price for Bitcoin . Hey, even banks know that their direct competition is going to make them money.
Speaking of money, who wants some Stimulus Money!?!
I believe the answer to that should be anyone who wants to see another surge in the Bitcoin price. How many of you in the Crypto space added to your portfolio after receiving your stimulus check, or maybe even as soon as you heard that you were going to receive the stimulus check in the coming weeks.
How much more did you make by choosing to invest some portion of it in Bitcoin versus holding it in those 0.01% super charged savings accounts we're all so excited about ;) Well, most believe a second stimulus check is likely to happen again at some point. Get ready for it!
Supply and Demand, and also Inflation:
My cash seems to be confused. It is going in the wrong direction! Remember the good old days. The average house used to cost $3,200. A loaf of bread cost 7 cents. Movie tickets were 10-15 cents. Clearly I wasn't alive back then, but I've heard that's how things used to be. is nasty and it's not stopping. I mean, it's cool and all that money can be magically printed out of thin air, but except for the stimulus checks, that's not going to help any of us. Printer goes brrrrr!
Bitcoin has a cap of 21 Million coins. It's a simple statement, but the implications of this are why I chose Bitcoin . Every time someone buys bitcoin and chooses to hold it, guess what... sorry Charlie, it's no longer available for you to buy. You have to find some other foolish person who is willing to sell you their Bitcoin . I understand people trade the trends, and I'm all for that, this is TradingView after-all, but long term I want to be holding my Bitcoin , not getting rid of it. The rate of Bitcoin is now approximately down to 1.8% and will become significantly better with each halving.
Fun Fact. There are approximately 46.8 million millionaires. Only half of them would ever be able to own a single Bitcoin . Also, several million bitcoin are supposedly lost forever, and some individuals and companies are already holding multiple percentages of the bitcoin supply. I will again reemphasize there will only ever be 21 million bitcoin .
Thanks for checking out some of my thoughts. I'm super excited about Bitcoin and hope there will be many more to join this community soon.