In all my time in Bitcoin, I have never experienced as much fear, uncertainty, and depression as in the past few weeks. Elon Musk, Donald Trump, and the IMF entered the circle of oblivious market manipulation to increase uncertainty and fear. However, Bitcoin has been crab-walking since then, why this makes me bullish on Bitcoin will be further discussed in this article.
The past few weeks have been boring if we look at price action. Bitcoin has been bouncing between 30 and 40k, the consolidation is obvious at this point. Many still fear market manipulation and who can blame them? After Elon Musk’s tweets, crypto tends to move in a range of 5 to 20% depending on the tweet’s mood. But even Elon Musk could not get Bitcoin to move below 30k breaking its support. Moreover, Donald Trump could not accelerate the “fall of Bitcoin”. The IMF came out, denying El Salvador’s move of making Bitcoin a legal tender by quickly saying that the cryptocurrency industry is the “wild west” and needs regulations. Not even this moved price below 30k.
After all this fear and market manipulation, Bitcoin stays above 30k and a 500 billion USD market cap. At this point it is clear, newcomers let themselves be influenced too much by the market manipulators. However, old Bitcoiners are not influenced, this is reflected in price staying above 30k, the majority hodls. People being influenced tend to be more reactive to fear of missing out.
Bitcoin has its way of punishing people that sell their coins. Since Bitcoins price action is fast, many will miss the opportunity to re-enter the market at a lower price as they were probably selling. Once Bitcoin breaks certain price levels, FOMO will pick up. Thanks to all the manipulators, there are now more people watching the space than ever. Therefore, it is only a matter of time until many will realize that Bitcoin is not planning to stop at 60k.
So, what must be done for FOMO to kick in?
Bitcoin will not need much this time for FOMO to kick in. 42k has been a resistance before, perfectly setting the scene for a breakout trade, this will be a trade, anticipated by many market participators. But price alone will not help Bitcoin reclaim its all-time high levels. FOMO will be the most important factor. Market participators are waiting on the side-line for around 8 weeks, waiting for a once-in-a-lifetime opportunity, once the sentiment is established, People will craze for Bitcoin. Moreover, there are many models, predicting Bitcoin’s price to be above 100k. The Stock to Flow model of Plan B predicts 220k Bitcoin by the end of 2021, while influencers such as Max Kaiser say the same thing.
So, is Bitcoin set to break its all-time highs?
It is very hard to predict what Bitcoin will be doing next, but one thing is certain, the Bitcoin space is gaining in massive popularity, making a bull run more and more likely. Even TV channels can not shut up about it anymore. People get more and more sensitive to the topic, making a purchase more probable. Big announcements such as MicroStrategy and El Salvador will make people think about Bitcoin. Thinking about Bitcoin is a self-fulfilling prophecy.
Why is the bottom in?
Easy! Market manipulators will not bring prices under 30k, they tried and not even the IMF had accomplished it.
Should you be buying now?
Never buy without a strategy, Bitcoin prices are very volatile, and you never know when the next market manipulation will hit prices. Dollar-cost averaging is and will always be the best way to buy Bitcoin.
Bitcoin’s value is derived from the subjective valuation of the coin. Bitcoin staying above 30k shows me that people subjectively value Bitcoin more than what manipulators have to say. Bad news for Elon and good news for Coiners. Keep calm, stack, and never invest more than you can afford to lose!
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