Bitcoin Will Drop... Alot. But it Will Rise Above the Ashes.
Markets are going to keep going down in fear of Chinese real estate powerhouse Evergrande defaulting; Bitcoin will drop alongside it in the short term. My chart shows we may still rebound after we hit the 38k area.
With that being said, if the Chinese housing bubble crashes, which represents 28% of China's entire economy, we will enter a global correction. Combine that with current inflation rates (6% on the year), and if this spending bill passes congress, we will enter a long term bearish outlook; which will shred BTC down to the 20K's in the short term as people liquidate assets in fear of them dropping further. That will be the ultimate buy opportunity, as BTC will serve as an inflation hedge long term, and only augments Bitcoin's use case - despite China working overtime to thwart the coin at every new opportunity it seems.
The only chance Evergrande has, is if the Chinese government bails it out. But that will only alleviate things for a short time, a band aid. If that happens, and the markets rebound, im looking to liquidate my stock portfolio and hold cash.
The whole world is looking at China right now...
With that being said, if the Chinese housing bubble crashes, which represents 28% of China's entire economy, we will enter a global correction. Combine that with current inflation rates (6% on the year), and if this spending bill passes congress, we will enter a long term bearish outlook; which will shred BTC down to the 20K's in the short term as people liquidate assets in fear of them dropping further. That will be the ultimate buy opportunity, as BTC will serve as an inflation hedge long term, and only augments Bitcoin's use case - despite China working overtime to thwart the coin at every new opportunity it seems.
The only chance Evergrande has, is if the Chinese government bails it out. But that will only alleviate things for a short time, a band aid. If that happens, and the markets rebound, im looking to liquidate my stock portfolio and hold cash.
The whole world is looking at China right now...
Comment:
Looks like we bounced back to the precise target level for my chart, let's see if we move down to the 38k zone next...
Comment:
I'd say decent job with this one
