If we believe that the price of Bitcoin can no longer rise, the price will continue to rise shamelessly. Bitcoin got wings and decided to fly. We’re on a rocket and our target is the moon. Will we break the all-time high in the next few days? Anything can happen here. Please adjust your straps.
Now let’s talk about this week’s most popular crypto news.
Technical analysis studies the historical behavior of price and uses patterns to predict the future. This is done under the belief that history repeats itself. The technical analyst mainly relies on certain indicators and the interpretation of graphs. Of course, we are not faced with an exact science. There are no guarantees here. But you could say it’s a matter of probability. As we can imagine, the odds of anticipating unexpected events are not very good. And the exceptions are usually in a blind spot. However, it would be a mistake to abandon the strange art of statistical probability altogether.
Why should the signs be positive? Well, after the December 2017 high, the price began to drop dramatically for over 12 months, losing more than 80% of its value. Obviously a severe winter. The signs were negative everywhere. But then, in 2019, things seemed to change and many declared the end of the crypto winter. In retrospect, however, it is clear that we did not have a bullish period after the crypto winter itself. What we actually had was a long sideways period. We’ve had ups and downs, but for a long time we hovered near $ 9,000. That is, the price went up and down, but the average price was always close to $ 8-9,000.
In other words, the fixes broke off the previous hikes for a long time. For almost two years, the average was just under $ 9,000. What I’m talking about here is that we’ve got used to a painful correction after a big rally. And many of us use these fixes as a buying opportunity. However, many of us survive playing with volatility during this long lateral period.
Things changed a few months ago when the $ 10,000 support solidified. The days passed and it never broke. The correction never came. It’s now a magical November and the fix is still ongoing. The buying opportunity does not come. And many fear that they will stick with the frills and wait for what will never come.
Ladies and gentlemen, everything seems to indicate that the sideline period is over and the bull season is about to begin. In other words, the corrections after a big rally are unlikely to be as dramatic as they have been in the past. In other words, the era of increasing resistance and support has arrived.
Now let’s move on to the topic of corrections. Or in other words: When should we buy? Do we wait or do we buy now? If we wait too long and the correction never comes, we will miss the opportunity for future hikes. However, if we buy now and the price drops dramatically, we would be buying too high. The eternal dilemma of every bitcoiner.
Well, everything seems to indicate that times are changing. We are no longer in the long sideways period. $ 1K fixes are fixes too. On the other hand, a couple of months is not a long time. Do you remember 2019 During the first semester the price only increased. Correction never came. But then the decline began in the second half of the year and ended not far from the starting point. We have to be patient with the numbers and the time. If Bitcoin corrected a week after each rally and hit the same starting point every time, it would be too easy. And nothing is easy in this business.
Our vision of the future says a lot about the present. What will be will be. But the future is nothing other than our expectations. Investing is the art of anticipation. We do not invest in what happens today, but in what we believe today to be tomorrow. In other words, optimism is key in the investment world. The focus is on trust in an asset.
It is not always easy to use the futures market behavior to accurately predict the price behavior on the spot market because the futures market is just as irrational as the spot market. Obviously there is a mutual influence. Contract periods lead to buyers or sellers depending on the price differences. However, I am a little skeptical about using the futures market as a crystal ball to predict the price of Bitcoin. Of course, it’s an excellent indicator of mood in the present.
Yes, I think it’s healthy that we have a consolidation phase so that our ascent is staggered. The October and November successes are being well received, but I think the system requires a break as it is not yet clear what our support is. This is all happening so quickly that we still don’t know exactly how much FOMO is and how much we’ll keep from these latest promotions. But let’s see what happens.
If we could explain in one sentence what is happening, we could put it this way: Wall Street is starting to take Bitcoin seriously. We cannot say that there is a particular reason. It’s more of a general sense of humor fueled by the pandemic, the change of government in the US, vaccines, the profound digitization of the world, the fintech boom and hopes for a new normal. All of this has served as a catalyst for the beautification of Bitcoin in the eyes of smart money. Up Bitcoin!