Euphoria Begins To Tickle
Bitcoin has once again breached 18K and many are beginning to experience the tingling of euphoria as they begin to envision the gains ahead. It has been a long wait and we have endured this past bear market for the sole purpose of arriving at this day. We are standing on the brink of a new and exciting season for Bitcoin and hopefully, the Crypto market in general. At some point though, alts that have no significant future have to either pack up shop or be starved to death. Hopefully you are holding the coins that are going to survive and go on to thrive in this bull market.
There are however some rather different dynamics taking place this time around for Bitcoin. The media has been strangely quiet, especially considering a 10% move from here is going to put us back at all time high levels again. It is not so much the retail sector that is in a frenzy but rather financial institutions and corporations.
In short, it seems as if the forces of past resistance are becoming present stimulus and there is not much holding Bitcoin back, even within the charts. Macro trends are very much in Bitcoin's favor going forward and it seems as if a truly dynamic shift is busy taking place.
The Possibility That 2017 Suggested Could perhaps Now Play Out
Being involved in Crypto for sometime now enabled me to be part of the previous move from $600 to $20 000 and I must admit that many of us around at that time did not consider another typical 80% correction likely. The amount of hype and mainstream attention that Bitcoin received left one thinking that perhaps Bitcoin was finally being established in a world outside of cypherpunks and geeks. A correction was obviously inevitable but few thought that the typical cycle would play out, since the dynamics had changed so much.
Bitcoin went on to complete a typical market cycle and it became more and more clear that BTC was following the pattern it had always followed. What we are now seeing on Crypto Twitter is a similar argument being put forward as back then. Will BTC one again collapse 80% after reaching a new all time high market peak?
I have to be honest, the arguments to support a theory that Bitcoin will not drop as severely as before are a lot more convincing than last time around. Previously, there was no excessive money printing taking place. There was no global crisis unfolding. Hedge fund managers were not moving into Bitcoin, besides Mike Novagratz. Companies were not putting their cash reserves into Bitcoin and PayPal was not offering Crypto services.
I am just touching the surface of what has transpired since the heights of 2017 and still the evidence is overwhelmingly clear that there is a lot more "support" for the Crypto market. Typically we should start seeing 30% corrections soon, of which we have not yet seen. Could the dynamics have changed so severely that perhaps flash crashes and market top crashes will not be as severe as previous cycles.
I guess we will have to wait and see!
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