The Bitcoin (BTC) price is currently above $96,400, and given all the positive indicators, the amount of buying taking place, and Bitcoin’s role as a sovereign asset, it could only be a matter of a few weeks before the all-time high is reached and surpassed.
Fear blinds investors
From March 2024, through to November 2024, as Bitcoin traversed sideways and downwards in that seemingly endless bull flag, many in the market may have capitulated, especially when the price wicked down to that $49,100 local bottom.
Then, once the $BTC price had shot out of the top of the bull flag and made a new all-time high at $109,000, the price rolled over and downwards. Many feared that the top was now in for this cycle, and that this was a spiral into the next bear market.
Given that the price fell more than 30%, and down just under $74,500, many in the market were extremely bearish, and if they hadn’t capitulated the last time, they surely were going to this time.
The Crypto Fear and Greed Index sank as low as a score of 10, while the U.S. stock market Fear and Greed Index got all the way down to almost rock bottom with a score of 3. Both indexes were in ‘Extreme Fear’.
While in the depths of despair at these bottoms, it was so very difficult to see a way out. The US and global economies were going through very stormy weather, and it looked as though any of the major economies could crash at any moment, bringing the rest with them like a collapsing pack of cards.
You only have to recognise Bitcoin for what it is
However, throughout the maelstrom of bad economic, geopolitical, and political news one only needed to step back, look at the macro chart, know that money printing would arrive eventually, and recognise that Bitcoin was the best-looking lifeboat among a very small and select group of other lifeboats.
It has always been that simple, and most of us just could not see the wood for the trees. When in doubt, one only has to see Bitcoin for what it is. It can’t be manipulated. Only 21 million can ever be issued. No third parties need to be involved. It’s completely outside of any government control. Can be sent to anyone in the world. Settles instantly. Negligible fees for sending large amounts. You can custody it yourself.
A quick look at the competition
If one then looks at the competition; fiat currency can be printed to oblivion, it can be manipulated by governments. Transactions go through third parties. Transactions can be stopped. Bank accounts can be frozen or confiscated. Purchasing power is diminishing ever more rapidly. If Central Bank Digital Currencies (CBDCs) are introduced, every last vestige of control over your own money would be lost.
If one then looks at gold, the traditional store of value, and flight to safety, history shows us that governments have been able to manipulate, suppress, and control its price. Gold holdings by central banks are completely opaque. More can be dug out of the ground. Try sending $1 billion worth of gold to a creditor in another country.
Bitcoin bull market is far from over
Source: TradingView
The weekly Bitcoin chart above displays the price action since 2021. This is a thing of beauty. While the bull market that finished in 2021 was possibly curtailed due to all the shenanigans of the Biden administration, this current bull market has the hallmarks of potentially doing a whole lot better.
The price action of the big bull flag, followed by the falling wedge are both large continuation patterns. Once this surge is able to get through current resistance, it has the potential to easily reach the all-time high and then begin the next sortie into price discovery. This bull market is far from over.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Credit: Source link
